Least-Cost Subsidization Alternatives

Robert G. Chambers

American Journal of Agricultural Economics, 1985, vol. 67, issue 2, 251-256

Abstract: This paper considers least-cost subsidy alternatives for agriculture in an optimal tax framework. The goal of farm policy is presumed to be the economic survival of a particular class of farmers. Least-cost formulas for linear subsidies are derived. It is shown that output subsidization alone will generally not be least cost.

Date: 1985
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Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:67:y:1985:i:2:p:251-256.

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