| In accordance with EU regulations, payment levels for several measures of rural development programs are calculated on the basis of standard cost approaches, using 'typical’ or average figures for costs incurred and income forgone. Resulting uniform payment rates have been frequently discussed and criticised as being inefficient, having a low cost-effectiveness and generating excessive windfall profits. However, few empirical studies exist which quantitatively examine potentials of a more differentiated standard cost approach. By using German farm accountancy data, this study analyses effects of a payment differentiation according to regional and farm individual characteristics on producer rents, budget expenditures and economic efficiency. Preliminary... |
