Agri-environmental policy is modelled as a social welfare maximisation problem that recognises the potential trade-off between increased environmental benefit and increased cost of monitoring compliance. Moral hazard arises because monitoring does not detect all those who fail to comply with...

An error correction model of Greek agriculture for the period 1961-94 is estimated using a dynamic system of output and input share equations derived from a translog profit function. Nested within this model are a static model and three simpler dynamic models: a partial adjustment model,...