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Policies for Promoting Public Goods in Agriculture

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  • Romstad, Eirik
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    Abstract

    The ongoing negotiations of the World Trade Organization (WTO) on agriculture has triggered an increased interest in the linkages between commodity production and public goods in agriculture. This paper takes a closer look at this issue. Particular emphasis is placed on production economics and policy design issues. Production is placed in a multi-product multi-input setting. The provision of public goods from agriculture is analyzed utilizing a principle-agent framework. Particular emphasis is placed on issues pertaining to incentive compatibility, informational aspects and the participation constraint. Public finance aspects of various policies are also addressed. Price supports are of particular interest as they are widely used in European agriculture. This makes analyses of price supports particularly relevant.

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    File URL: http://purl.umn.edu/24930
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    Bibliographic Info

    Paper provided by European Association of Agricultural Economists in its series 2002 International Congress, August 28-31, 2002, Zaragoza, Spain with number 24930.

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    Date of creation: 2002
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    Handle: RePEc:ags:eaae02:24930

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    Keywords: Multi-product production; public goods; agriculture; principal-agent models; resource allocation; policy; Agricultural and Food Policy;

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    1. Peter A. Diamond & Jerry A. Hausman, 1994. "Contingent Valuation: Is Some Number Better than No Number?," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 45-64, Fall.
    2. Runge, C. Ford, 1998. "Emerging Issues In Agricultural Trade And The Environment," Working Papers 14383, University of Minnesota, Center for International Food and Agricultural Policy.
    3. Paul R. Portney, 1994. "The Contingent Valuation Debate: Why Economists Should Care," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 3-17, Fall.
    4. Runge, C. Ford, 1999. "Beyond The Green Box: A Conceptual Framework For Agricultural Trade And The Environment," Working Papers 14417, University of Minnesota, Center for International Food and Agricultural Policy.
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