Information, incentives, and the design of agricultural policies
In: Handbook of Agricultural Economics
AbstractThis chapter surveys studies that have used the methods of mechanism design, optimal taxation, nonlinear pricing, and principal-agent analyses in the analysis of agricultural policy. The optimal design and reform of agricultural policy are studied under the presumption that agricultural producers are better informed about their technology or their actions than agricultural policy makers. The existence of these information asymmetries creates incentive problems that must be tackled in the design of an optimal agricultural policy. Two basic types of information asymmetries are studied, those associated with hidden knowledge and those with hidden action. Hidden knowledge occurs when the farmer has exact information about his technology, but the regulator does not. Hidden action occurs when only the farmer has exact information on the conditions, including the state of Nature and the farmer's actions, under which production takes place.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
This chapter was published in:
This item is provided by Elsevier in its series Handbook of Agricultural Economics with number 4-34.
Contact details of provider:
Web page: http://www.elsevier.com/wps/find/bookseriesdescription.cws_home/BS_HE/description
Find related papers by JEL classification:
- Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Canton, Joan & De Cara, Stéphane & Jayet, Pierre-Alain, 2009. "Agri-environmental schemes: Adverse selection, information structure and delegation," Ecological Economics, Elsevier, vol. 68(7), pages 2114-2121, May.
- Bourgeon, Jean-Marc, 2002. "The Common Tragedy of Regulations," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24819, European Association of Agricultural Economists.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.