ASSESSMENT OF TARGETING IN THE RURAL DEVELOPMENT PROGRAMME: A CASE STUDY OF THE AUSTRIA INVESTMENT SUPPORT MEASURE
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Targeting is a central part of many public support schemes to increase cost-effectiveness of policy intervention. Interestingly, targeting in the Rural Development Programs (RDP) of the EU has so far not been quantitatively evaluated for investment support schemes. In this article we suggest how the effectiveness of targeting in the investment support schemes can be evaluated with routinely available data. For an Austrian case-study we find that targeting of investment support measures could be substantially increased if eligibility criteria were used more extensively, as maximum aid-intensity differentiation turns out not to be effective and selection through ranking is not selective if the budget constraint is not binding.