Title: Understanding the Determinants of Investment Reactions to Decoupling
Citation: The 109th Seminar of the European Association of Agricultural Economists (EAAE)
Publisher: Research in Agricultural and Applied Economics
Publication Year: 2008
JRC N°: JRC49315
URI: http://ageconsearch.umn.edu/handle/44841
Type: Articles in periodicals and books
Abstract: The objective of this paper is identify the determinants of reaction to decoupling, focusing, in particular, on farm strategies and investment behaviour both on-farm and offfarm investment. The paper analyses a sample of 248 farm-households located in 8 EU countries, using decision tree algorithms. The factors emerging as determinants of an increase of on-farm investment as a reaction to decoupling are the existence of a successor, age, farm size, part time vs. full time head of farm. Allowing for the use of country variables, these tend to account already for the factors listed above and become the main predictors, followed by labour endowment, specialisation and expectations.
JRC Directorate:Growth and Innovation

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