Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/173868 
Year of Publication: 
2017
Series/Report no.: 
IDB Working Paper Series No. IDB-WP-802
Publisher: 
Inter-American Development Bank (IDB), Washington, DC
Abstract: 
It is a well-known fact that a great majority of countries implement agricultural input subsidies as a tool to boost agricultural productivity and output. However, even though this practice is widely spread and represents a large part of the agricultural budget, little emphasis has been placed on the evaluation of the effectiveness of such schemes. This paper aims to shed light on this issue by exploring the impact of agricultural input subsidies on agricultural productivity. Using a quasiexperimental approach (Propensity Score Matching), this study estimates the impact of receiving an agricultural input donation on the value of production per hectare as a measure of the effect on agricultural productivity. To this end, data from the "Encuesta Permanente de Hogares" of Paraguay, a nationally representative household survey collected in 2012, was utilized. The results provide evidence that agricultural input donations do not have an impact on agricultural productivity or input utilization.
Subjects: 
Agriculture
input subsidies
productivity
propensity score matching
Paraguay
JEL: 
H41
O12
O13
Q12
Q18
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

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