Innovation in Estimation of Revenue and Cost Functions in PMP Using FADN Information at Regional Level
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The objective of this paper is to present an
evolution of PMP model suitable to estimate the revenue
function and to provide price elasticity due to the
variation of subsidies at farm level, especially if they are
decoupled. This problem arises when individual data of
farm households in a given region, coming from FADN,
are used for implement PMP models finalized to policy
analysis. This paper presents the theoretical background
of the proposed innovations and empirical evidence on
the basis of a sample of farms included in FADN
database in Italy.