An ex-post evaluation of the 2000-2006 Rural Development Plan of the Lazio Region using farm-level data

Abstract

The paper evaluates the 2000-2006 Rural Development Plan of the Lazio Region. It applies a difference in difference analysis to a dataset composed of data from the V and VI agricultural census, and administrative data about rural development payments. The total sample is composed by 46,021 farms. The empirical analysis shows that farms receiving rural development payments (treatment) increased their competitive capability more than those with no payments (control group). The data supported the hypothesis of a selection effect: farms with higher competitive capability were more likely to obtain payments. A regression approach confirmed the results of the non-parametric difference in difference analysis.