Journal Article

The Production Effects of Agricultural Income Support Policies under Uncertainty

David A. Hennessy

in American Journal of Agricultural Economics

Published on behalf of Agricultural and Applied Economics Association

Volume 80, issue 1, pages 46-57
Published in print February 1998 | ISSN: 0002-9092
Published online February 1998 | e-ISSN: 1467-8276 | DOI: http://dx.doi.org/10.2307/3180267
The Production Effects of Agricultural Income Support Policies under Uncertainty

More Like This

Show all results sharing these subjects:

  • International Trade
  • Agricultural Economics

GO

Show Summary Details

Preview

This analysis decomposes the production impacts of income support programs into wealth, insurance, and coupling effects. Under the usual assumptions about preferences, the wealth and insurance effects of many support programs increase optimal input levels even for supposedly decoupled programs. If the program is “coupled” in the usual sense, then all three effects often act in the same direction. It is concluded that studies of trade and domestic policy reform in stochastic environments should consider insurance and wealth effects. The derivative conditions required to obtain results are also subjected to scrutiny. Simulations for an Iowa corn producer confirm the comparative statics.

Keywords: coupling effects; decoupled support; insurance effects; wealth effects; F130; Q180

Journal Article.  0 words. 

Subjects: International Trade ; Agricultural Economics

Full text: subscription required

How to subscribe Recommend to my Librarian

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.