Trade Restrictions on Farmland - a Utilitarian Analysis of Paternalistic Laws
The aim of this paper is to approach the normative analysis of paternalistic laws. Our examples are restrictions on trade in agricultural land: a quantitative restriction in Switzerland and Germany and a fixed price range for lease land in France. We develop a normative framework from the literature and apply it to the restrictions. It shows that the quantitative restrictions apparently rest on a misunderstanding of structural change and can therefore hardly be justified, whereas the price allegation protects from information asymmetries which would lead to unfair results. Hence it can be shown that a normative analysis of paternalistic interventions can produce meaningful results.
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- Rucker, Randal R & Thurman, Walter N, 1990. "The Economic Effects of Supply Controls: The Simple Analytics of the U.S. Peanut Program," Journal of Law and Economics, University of Chicago Press, vol. 33(2), pages 483-515, October.
- Mann, Stefan, 2003. "Why organic food in Germany is a merit good," Food Policy, Elsevier, vol. 28(5-6), pages 459-469.
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