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EFFECTIVENESS OF CROSS-COMPLIANCE UNDER ASYMMETRIC INFORMATION AND DIFFERENTIATED COMPLIANCE CONSTRAINTS

Authors: Raggi, Meri; Bartolini, Fabio; Gallerani, Vittorio; Viaggi, Davide; Raggi, Meri; Bartolini, Fabio; Gallerani, Vittorio; +1 Authors

EFFECTIVENESS OF CROSS-COMPLIANCE UNDER ASYMMETRIC INFORMATION AND DIFFERENTIATED COMPLIANCE CONSTRAINTS

Abstract

The effects of cross-compliance depend on the strategies of participation/compliance of farmers, as well as on the ability of public administration to design appropriate policy mechanisms. The objective of this paper is to present a framework for the analysis of cross-compliance under asymmetric information with the option of differentiating commitments across farmers. The methodology is applied to a case study represented by the province of Bologna (Italy). The results show that, in the present conditions of control and sanctions, only a small share of farms is interested in complying with cross-compliance. The profitability of the choice of compliance/non-compliance depends mainly on the amount of single farm payment entitlements compared with the total land. The differentiation of restrictions across farmers, under relevant budget constraints for controls, appears a key strategic components in order to ensure the effectiveness of cross-compliance.

Keywords

Asymmetric information, Farm Management, Single farm payment, Cross-compliance

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
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