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| Ciaian, Pavel; Pokrivcak, Jan; Szegenyova, Katarina. |
| In this paper we estimate the impact the CAP subsidies on farm bank loans. According to the theoretical results, if subsidies are paid at the beginning of the growing season they may reduce bank loans, whereas if they are paid at the end of the season they increase bank loans, but these results are conditional on whether farms are credit constrained and on the relative cost of internal and external financing. In empirical analysis we use the FADN farm level panel data to test the theoretical predictions for period 1995-2007. We employ the fixed effects and GMM models to estimate the impact of subsidies on farm loans. The estimated results suggest that (i) subsidies influence farm loans and the effects tend to be non-linear and indirect; (ii) both coupled... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Farm credit; CAP; Credit constraint; Agricultural and Food Policy; Agricultural Finance. |
| Ano: 2011 |
URL: http://purl.umn.edu/103085 |
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| Ciaian, Pavel; Pokrivcak, Jan; Szegenyova, Katarina. |
| In this paper we estimate the impact of CAP subsidies on farm bank loans. According to the theoretical results, if subsidies are paid at the beginning of the growing season they may reduce bank loans, whereas if they are paid at the end of the season they increase bank loans, but these results are conditional on credit constraint and on the relative cost of internal and external financing. In empirical analysis we use the FADN farm level panel data for period 1995-2007. We employ the fixed effects and the GMM models to estimate the impact of subsidies on farm loans. The estimated results suggest that (i) subsidies influence farm loans and the effects tend to be non-linear and indirect; (ii) both coupled and decoupled subsidies stimulate long-term farm... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Agricultural Finance. |
| Ano: 2011 |
URL: http://purl.umn.edu/114289 |
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