A biofuel blend mandate may increase or decrease consumer fuel prices with endogenous oil prices, depending on relative supply elasticities. Biofuel tax credits always reduce fuel prices. Tax credits result in lower fuel prices than under a mandate for the same level of biofuel production. If...

This article explores intrahousehold dietary diversity allocation within pastoralist households in eastern Africa. We estimate income elasticities of dietary diversity for demographic cohorts allowing asymmetric behavior depending on household circumstances. We find that household heads...

A general theory of cross-subsidization due to inframarginal support is developed. Two sources of output distortion are identified: "exit deterrence" and "extramarginal output." Some firms would not be in business without the subsidy. Cost savings due to declining average costs are always...

Economists frequently focus on correlations between wealth and risk preferences but rarely observe the probabilities needed to test this relationship empirically. These unobserved probabilities are typically estimated via profit or production functions conditioned on wealth correlates, which may...

A framework is developed to analyze the effects of a biofuel consumer tax exemption and the interaction effects with a price contingent farm subsidy. Ethanol prices rise above the gasoline price by the amount of the tax credit. Corn farmers gain directly while gasoline consumers only gain from...

We propose an analytical distinction between standard risk aversion based on the valuation of a single gamble and marginal risk aversion based on the change in valuation between two gambles. We measure marginal risk aversion in two dimensions—mean and variance. Data from a field experiment is...