PT  - JOURNAL ARTICLE
AU  - Michalek, Jerzy
AU  - Ciaian, Pavel
AU  - Kancs, d’Artis
TI  - Capitalization of the Single Payment Scheme into Land Value: Generalized Propensity Score Evidence from the European Union
AID  - 10.3368/le.90.2.260
DP  - 2014 May 01
TA  - Land Economics
PG  - 260--289
VI  - 90
IP  - 2
4099  - http://le.uwpress.org/content/90/2/260.short
4100  - http://le.uwpress.org/content/90/2/260.full
SO  - Land Econ2014 May 01; 90
AB  - This paper estimates the capitalization of the single payment scheme (SPS) into land values. The theory suggests a nonlinear and discontinuous relationship between the SPS and land rents. In empirical analysis we employ unique farm-level panel data and apply the generalized propensity score matching approach. Our estimates suggest a 6% to 10% SPS capitalization rate. On average in the European Union, the nonfarming landowners’ gains from the SPS are only 4%. However, there is a large variation in the capitalization rate for different SPS levels and between different member states (3% to 94%). (JEL H23, Q15)