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Internal research projects - year 2014

Project No.: 1273

Project title:

The impact assessment of investment support provided within frame of Rural Development Plan 2007-2013 (Medonos)

Head of project:

Ing. Tomáš Medonos, Ph.D.


Ing. Jindřich Špička, Ph.D., Ing. Jan Boudný, Ing. Martin Hruška, Ing. Zuzana Hloušková; external cooperation RNDr. Tomáš Ratinger, MSc., Ph.D. (Technology Centre ASCR)


To quantify the causal effects of the structural support in comparison with the contra-factual situation without intervention in case of supported farms. Impacts are evaluated primarily by means of the economic performance and other non-economic contributions that sequent on the structural support for farms in a longer time horizon.

Sub-objective 1:

  • To update the possible economic impacts of the investment support with usage of appropriate methods of counterfactual analysis based on the actual economic situation of the farms for the period 2007-2012 taking into account the different time periods when support was obtained.
  • To evaluate the effects of investment aid broken down by the different farm types or focus of the projects (dairy farming and cattle, pigs and poultry, etc.), participation in the program of organic farming and by inclusion in the LFA.
  • To verify measurement of impacts not only by means of the partial productivity, but also by indicator of the total factor productivity (TFP), which eliminates the effect of the substitution effect (EC designed as one of the impact indicators).

Sub-objective 2:

  • To evaluate the effects of investment support of both productive and non-productive investments in the case of milk production using as quantitative as qualitative methods.
  • To identify broader area of impacts for non-economic impacts using qualitative analysis.
  • To identify and quantify the deadweight of investment aid.
  • To use the results in the formation of draft measures including process monitoring and evaluation of the new RDP 2013-2020.

Methodology, assumptions, sources:

  • Methodological approaches of contra-factual analysis especially Propensity Score Matching and Nearest Neighbour Matching based on identification of non-supported farms with similar characteristics as group of supported farms (Božík 2011; Khandker et al. 2010; Michalek 2009; Medonos et al. 2013).
  • Impacts of investment support in case of farms with the dairy production will be evaluated on 97 farms not only from perspectives of changes in the cost effectiveness but also the change of milk yield, the change of technical efficiency, the technological change and the change of the total factor productivity. We try to take in account also possible impacts from the non-productive investments in manure management that can significantly influence economy of the milk production. Calculation of the level and change of technical efficiency and technological change will be calculated by the frontier analysis Data Envelopment Analysis. For calculation of total factor productivity we will use Tornquist index (Coelli et al. 2005, Boudný et al. 2011).
  • We will apply qualitative analysis in the form of case studies on the sample of 97 farms for assessment of other aspects of intervention in diary production especially non-economic feature including of examination of the whole process of investment decision making for assessment of deadweight of the supporting measure 121.

Outputs and their use:

  • Providing proven results and methodological tools (especially partial methods counterfactual analysis) for the evaluation of the RDP 2007-2013, its end (for ex post evaluation).
  • Obtaining information on the benefits in terms of production technology parameters (performance, production costs, energy savings, etc.). It could help to assess preferential treatment criteria in the upcoming RDP 2014-2020 for better targeting of the program.
  • 1 article in a magazine - either reviewed and included in the list RVVI or in a journal with IF (until the end of 2014, provide proof of acceptance article for publication).
  • At least two articles in conference proceedings.
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