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Stop-and-Go Agricultural Policies

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  • Jean-Marc Bourgeon
  • Robert G. Chambers

Abstract

The optimal design of farm policy and public investment in agriculture in the presence of asymmetric information between the government and farmers is studied. It is shown that a mix of capped deficiency payments and voluntary paid land diversion can implement the optimal policy outcome. Optimal program design requires large farmers to farm all their land, and small farmers may or may not divert acreage. Decoupled policies are never optimal. Copyright 2000, Oxford University Press.

Suggested Citation

  • Jean-Marc Bourgeon & Robert G. Chambers, 2000. "Stop-and-Go Agricultural Policies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 1-13.
  • Handle: RePEc:oup:ajagec:v:82:y:2000:i:1:p:1-13
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    File URL: http://hdl.handle.net/10.1111/0002-9092.00001
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    Cited by:

    1. Paul Allanson, 2007. "Classical Horizontal Inequities in the Provision of Agricultural Income Support," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(4), pages 656-671.
    2. Feng, Hongli, 2007. "Green payments and dual policy goals," Journal of Environmental Economics and Management, Elsevier, vol. 54(3), pages 323-335, November.
    3. Bourgeon, Jean-Marc, 2002. "The Common Tragedy of Regulations," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24819, European Association of Agricultural Economists.
    4. repec:eee:jfpoli:v:75:y:2018:i:c:p:15-23 is not listed on IDEAS
    5. Bontems, Philippe, 2008. "On the optimal design of income support and agri-environmental regulation," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6246, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Crepin, Anne-Sophie, 2005. "Incentives for wetland creation," Journal of Environmental Economics and Management, Elsevier, vol. 50(3), pages 598-616, November.
    7. Sheriff, Glenn, 2008. "Optimal environmental regulation of politically influential sectors with asymmetric information," Journal of Environmental Economics and Management, Elsevier, vol. 55(1), pages 72-89, January.

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