Agricultural Policies and Structural Change in French Dairy Farms: A Nonstationary Markov Model

Abstract

The aim of this paper is to gain an understanding into how agricultural policies have affected structural change in the French dairy sector. A nonstationary Markov model is estimated using a Generalized Cross Entropy approach. Results show that while the price of cow's milk encourages farm growth, direct payments and quota restriction favor small farms. The price signal is a key factor of structural change. As a result, higher milk prices may accelerate the trend toward the further growth of dairy farms. Settlement policy and technical change seem not to slow this trend.

Published in

Canadian Journal of Agricultural Economics / Revue canadienne d'agroeconomie
2015, volume: 63, number: 1, pages: 19-42

SLU Authors

• Karantininis, Konstantinos

  • Department of Economics, Swedish University of Agricultural Sciences
    

UKÄ Subject classification

Economics
Business Administration

Publication identifier

• DOI: https://doi.org/10.1111/cjag.12036

Permanent link to this page (URI)

https://res.slu.se/id/publ/54133