Modelling regional labour market dynamics: Participation, employment and migration decisions in a spatial CGE model for the EU

Este paper describe cómo los ajustes en los mercados de trabajo regionales tanto a los shocks de política como macroeconómicos se modelizan en RHOMOLO a través de decisiones de los trabajadores sobre participación, empleo y migración. RHOMOLO, como modelo de equilibrio general multisectorial e interregional es complejo tanto en términos de dimensionalidad como de modelización de interacciones espaciales a través de flujos de comercio y movilidad de factores. La modelización del mercado de trabajo está por ello limitada tanto por la capacidad computacional como por la facilidad para obtener una solución (en forma de expresión matématica, en forma reducida) del modelo. El módulo del mercado de trabajo consiste en decisiones de participación individuales, incluyendo el margen extensivo (participar o no) y el margen intensivo (horas de trabajo). El desempleo se determina a través de la curva de salarios y las decisiones de migración interregional se modelizan en un esquema de elección discreta basado en expectativas pasadas

The capitalisation of agricultural subsidies into farmland prices : A meta-analysis of empirical literature

This study systematically reviews the empirical literature of the past three decades on the capitalisation of agricultural subsidies into land prices. We undertake a comprehensive meta-analysis and conduct a qualitative assessment of the main econometric and data issues and their potential solutions. In total, we reviewed 26 papers published between 1997 and 2020 that contain 841estimates of capitalisation rates for rental prices and land values. After applying the outlier correction procedure, the final sample consisted of 719 estimates (433 for rental prices and 286 for land values). The average estimated capitalisation rate across studies is 33% for rental prices and 12% for land values. The results from meta-analyses show that several drivers explain the variation in subsidy capitalisation estimates between studies: (i) the type of subsidies and their implementation details; (ii) the estimation approach; (iii) the type of data used (e.g. microdata versus aggregated data, FADN, ARMS) and geographical coverage of the studies; and (iv) the type of publication outlet (working paper versus a journal publication) and the publication period. The results also suggest systematic differences in the drivers affecting the estimated capitalisation rates for rental prices and land values between studies, mainly related to the econometric approach and the type of data used

The Capitalization of Agricultural Subsidies into Land Prices

We review the recent theoretical and empirical literature on the capitalization of agricultural subsidies into land prices. The theoretical literature predicts that agricultural subsidies are capitalized into land prices when land supply is inelastic and land markets function well. The share of capitalized subsidies significantly depends on the implementation of farm subsidies, local land-market institutions, rural market imperfections, and spatial effects.Most empirical studies have shown that agricultural subsidies are only partially capitalized into land prices, estimating that decoupled payments andland-based subsidies exhibit higher capitalization than coupled paymentsand nonland-based subsidies, respectively. However, estimated capitalizationrates vary widely across studies largely because of data availability and identification challenges