Assessing the impacts of Pillar 1 and 2 subsidies on TFP in French crop farms
2012
MARY Sébastien
This paper analyses the impact of CAP subsidies on total factor productivity using a FADN dataset of French crop farms between 1996 and 2003. We first estimate a production function using a system GMM approach and then recover farm-level TFP. Further, the impact of Pillar 1 and 2 subsidies on TFP is investigated and results show that several subsidies have a negative impact on productivity during the period covered in the dataset. CAP reforms have also had an impact on the relationship between subsidies and productivity.
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