The Capitalisation of CAP Payments into Land Rental Prices: A Panel Sample Selection Approach
利用意大利农场数据，研究欧盟2003年CAP改革后补贴是否资本化进入地租，发现脱钩补贴仅有有限资本化，而挂钩补贴无资本化。
Abstract The empirical literature suggests that farmland prices and rents capitalise agricultural subsidies and that the 2003 reform of the EU Common Agricultural Policy, which decoupled subsidies from production and attached them to land, may have increased the extent of the phenomenon. Employing a farm‐level dataset, the Farm Accountancy Data Network ( FADN ) for Italy, we investigate this issue while accounting for selectivity, endogeneity and unobserved individual heterogeneity. To understand the impact of the reform we compare the estimates of capitalisation rate for decoupled payments with those for coupled payments. After correcting for unobserved individual heterogeneity and selectivity, our results reveal no capitalisation of coupled payments and only limited capitalisation of decoupled area payments into farmland rents in Italy.