External Publications
Date: 26/2/2021

A meta-analysis of the capitalisation of CAP direct payments into land prices


Alessandro Varacca (Università Cattolica del Sacro Cuore); Giovanni Guastella (Università Cattolica del Sacro Cuore, Fondazione Eni Enrico Mattei); Stefano Pareglio (Università Cattolica del Sacro Cuore, Fondazione Eni Enrico Mattei); Paolo Sckokai (Università Cattolica del Sacro Cuore)

Type: Journal
Published in: European Review of Agricultural Economics, 26 February 2021
Keywords: European Union common agricultural policy, Land prices


The impact of the European Union common agricultural policy direct payments on land prices has received substantial attention in recent years, leading to heterogeneous evidence of capitalisation for both coupled and decoupled payments. In this paper, we provide an extensive review of the empirical works addressing this issue econometrically and compare their results through a Bayesian meta-regression model, focussing on the impact of decoupling and its implementation schemes. We find that the introduction of decoupled payments increased the capitalisation rate, although the extent of this increment hinges on the implementation scheme adopted by the member state.

A meta-analysis of the capitalisation of CAP direct payments into land prices

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