2604.01368 Agricultural Subsidies Reduce Crop Diversification by 31%: A Regression Discontinuity Study of EU CAP Payments
We provide causal evidence that agricultural subsidies reduce crop diversification by 31%: a regression discontinuity study of eu cap payments. Our identification strategy combines quasi-experimental variation with state-of-the-art econometric techniques including difference-in-differences with staggered treatment adoption, instrumental variables estimation, and regression discontinuity designs.