Are Production Decisions Decoupled under a Bond Scheme? Experimental Evidence

Amy M. Nagler, Dale J. Menkhaus, Christopher T. Bastian, Nicole S. Ballenger, Erik O'Donoghue and C. Edwin Young

Review of Agricultural Economics, 2009, vol. 31, issue 2, pages 222-230

Abstract: Experimental economics procedures were used to investigate impacts of a proposed bond scheme on production decisions. As expected, production with subsidy payments tied to a support price was substantially higher than with no policy. A shift from the support price to equivalent annual or lump-sum payments not tied to price resulted in production at or near no-policy levels, providing empirical evidence to support the theoretical prediction that bond schemes would not result in production distortions. Potential extensions to the basic model used in this study also are presented. Copyright 2009 Agricultural and Applied Economics Association

Date: 2009

Downloads: (external link)
http://www.blackwell-synergy.com/servlet/useragent ... &year=2009&part=null link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:bla:ragrec:v:31:y:2009:i:2:p:222-230

Ordering information: This journal article can be ordered from
http://www.blackwell ... al.asp?ref=1058-7195

Access Statistics for this article

Review of Agricultural Economics is edited by Colin A. Carter, Daniel H. Pick and George B. Frisvold

More articles in Review of Agricultural Economics from American Agricultural Economics Association
Series data maintained by Christopher F. Baum ().