Direct payments to Japanese farmers: Do they reduce rice income inequality? Lessons for other Asian countries

This study investigates the income-equalizing effect of direct payments on rice income inequality in Japan using the Gini decomposition and the concentration curve. The results indicate that the direct payments in Japan are highly concentrated but they nevertheless reduce rice income inequality. How...

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Bibliographic Details
Published in:Journal of policy modeling 2020-09, Vol.42 (5), p.968-981
Main Authors: Nitta, Atomu, Yamamoto, Yasutaka, Kondo, Katsunobu, Sawauchi, Daisuke
Format: Article
Language:English
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Summary:This study investigates the income-equalizing effect of direct payments on rice income inequality in Japan using the Gini decomposition and the concentration curve. The results indicate that the direct payments in Japan are highly concentrated but they nevertheless reduce rice income inequality. However, the equalizing effect of direct payments is less than that in other countries because the Japanese payments are linked to participation in an acreage reduction program and are not fully decoupled. To pursue greater income equality, policymakers should decouple the payments and introduce mechanisms to decrease or limit the amount of support to the largest beneficiaries.
ISSN:0161-8938
1873-8060
DOI:10.1016/j.jpolmod.2020.02.006