EconPapers    
Economics at your fingertips  
 

Efficiency of Decoupled Farm Programs under Distortionary Taxation

GianCarlo Moschini () and Paolo Sckokai ()

Center for Agricultural and Rural Development (CARD) Publications from Center for Agricultural and Rural Development (CARD) at Iowa State University

Abstract: When lump-sum taxation is not feasible, decoupled transfers to farmers (which require raising government revenue) will entail welfare loss somewhere in the economy. Assuming the government's objective is to assure a given welfare level for farmers, we show that when decoupling is possible, free trade is always superior to some tariff protection for a small country, even under Distortionary taxation. As expected, for a large country there is scope for an optimal tariff policy that improves the terms of trade. However, we show a separation between the exercise of market power through an optimal tariff, and the interaction of Distortionary taxation with transfers to farmers. We conclude that decoupling is usually desirable, even in a distorted economy in which lump-sum taxation is not feasible.

Date: 1994-03
References: Add references at CitEc
Citations: View citations in EconPapers (19) Track citations by RSS feed

Downloads: (external link)
https://www.card.iastate.edu/products/publications/pdf/94gatt5.pdf Full Text (application/pdf)
https://www.card.iastate.edu/products/publications/synopsis/?p=893 Online Synopsis (text/html)

Related works:
Journal Article: Efficiency of Decoupled Farm Programs Under Distortionary Taxation (1994) Downloads
Working Paper: Efficiency of Decoupled Farm Programs under Distortionary Taxation (1994) Downloads
Working Paper: Efficiency of Decoupled Farm Programs Under Distortionary Taxatioin (1994)
Working Paper: Efficiency of Decoupled Farm Programs Under Distortionary Taxation (1994)
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: https://EconPapers.repec.org/RePEc:ias:cpaper:94-gatt5

Access Statistics for this paper

More papers in Center for Agricultural and Rural Development (CARD) Publications from Center for Agricultural and Rural Development (CARD) at Iowa State University Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2020-07-07
Handle: RePEc:ias:cpaper:94-gatt5