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Treatment of Domestic Agricultural Support and Implications for Reductions: The Case for the United States

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  • Gehlhar, Mark J.
  • Nelson, Frederick J.

Abstract

Recent changes in how domestic agricultural support is provided poses new challenges for database construction and modeling. Different views have emerged on how best to treat domestic support. The assumptions regarding direct payments are captured in subsidies to land. This paper used two databases with different treatment for land-based payments and conducts identical experiments with each. How these rates vary across sectors has important welfare implications. The current version of the database produces some questionable outcomes for U.S. production impacts.

Suggested Citation

  • Gehlhar, Mark J. & Nelson, Frederick J., 2001. "Treatment of Domestic Agricultural Support and Implications for Reductions: The Case for the United States," Conference papers 330923, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:330923
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    File URL: https://ageconsearch.umn.edu/record/330923/files/2595.pdf
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    References listed on IDEAS

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    2. Francisco Rodríguez & Dani Rodrik, 2001. "Trade Policy and Economic Growth: A Skeptic's Guide to the Cross-National Evidence," NBER Chapters, in: NBER Macroeconomics Annual 2000, Volume 15, pages 261-338, National Bureau of Economic Research, Inc.
    3. Dollar, David, 1992. "Outward-Oriented Developing Economies Really Do Grow More Rapidly: Evidence from 95 LDCs, 1976-1985," Economic Development and Cultural Change, University of Chicago Press, vol. 40(3), pages 523-544, April.
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