DISENTANGLING THE PRODUCTION AND EXPORT CONSEQUENCES OF DIRECT FARM INCOME PAYMENTS

Nancy H. Chau () and Harry de Gorter

No 21854, 2000 Annual meeting, July 30-August 2, Tampa, FL from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: This paper formalizes the production and export consequences of direct farm payments. Taxpayer financed direct payments distort exit and production incentives, while consumer financed subsidies also imply that the risks of domestic and export production differ. Welfare decompostion and empirical calibration illustrate the potential for import barriers to cross-subsidize exports.

Keywords: Agricultural and Food Policy; International Relations/Trade (search for similar items in EconPapers)
Date: 2000
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