The main objective of this paper is to evaluate ex-post the effects of the 2003 reform, in particular decoupling, of the Common Agricultural Policy (CAP) in the European Union (EU), with a specific focus on farm investment behaviour. In the past years a number of studies have addressed the issue...

Investment models typically explain only a small share of the total investment variation within or between firms. A reason for this may be that those models do not explicitly differentiate between the decision to invest and the decision about the level of investment. In this paper, a two-steps...

Welfare economics as the traditional, prescriptive theory framework used in agricultural economics has been criticised by institutional economists as being largely irrelevant to real-world policy issues. We therefore ask how normative statements are possible within an economic theory framework...