Is There Supply Distortion In The Green Box? An Acreage Response Approach
Kerr, William A.
The shift of the farm subsidies toward programs classified as being decoupled income supports in the WTOâs URAA raises the question of their true impact on production and trade. In this study, we measured the acreage effects of the Canadian whole farm programs under uncertainty. Based on the theoretical discussions regarding the role of the insurance effect in acreage decisions, we extend the theoretical restrictions examined by Chavas and Holt (1990)which enables us to include this effect in our model specification. Hence, we modified the expected utility maximization framework (under the hypothesis that farmers are risk averse)developed by Chavas and Holt (1990) and derived three distinct effects: market effects, the wealth effect, and the insurance effect.
WTO, decoupled, green box, area, production, Agricultural and Food Policy, Crop Production/Industries, International Relations/Trade, Production Economics,
In order to set up a list of libraries that you have access to,
you must first login
or sign up.
Then set up a personal list of libraries from your profile page by
clicking on your user name at the top right of any screen.