It seems paradoxical that developed countries continue subsidizing agriculture even though their agricultural sectors have been declining in relative importance since the middle of the 20th century. What drives support for agricultural protection in developed countries? We answer this question...

The relationship between ethanol, corn and oil prices are analyzed under two alternative situations, depending on whether or not consumers purchase ethanol on the basis of its contribution to mileage. In all cases, market prices of ethanol can be above or below the consumer price paid for...