Since most agricultural programs employ two or more policy instruments simultaneously, it is notable that little research has attempted to find optimal instrument combinations and no research exists which evaluates the social costs (unrealized benefits) of combining instruments suboptimally. In...

In developed countries governments aim to increase the market share of organic products. Assuming that organic farming creates a positive externality, we address the question of how this environmental benefit can be internalized best. Using the concept of heterogeneous producers and consumers we...

In developed countries governments aim to increase the market share of organic products. Assuming that organic farming creates a positive externality, we address the question of how this environmental benefit can be internalized best. Using the concept of heterogeneous producers and consumers we...

This study presents a general model demonstrating how to measure the (in)efficiency of a policy intended to meet objectives. If it is assumed that the government has available only those policy instruments it actually utilizes, our method is a test as to whether the government combines these...

Based on a graphical model we analyse the impacts of the Fischler Reform on land prices and the capitalization of single farm payments (sfp) into land values. The model shows that if there are more sfp than eligible land, the capitalization ratio will not decline but rather increase due to the...

Recent studies have investigated the efficiencies of policies that use several policy instruments simultaneously (for example, a policy that uses a production subsidy combined with a production quota). Several studies of very specific cases find that optimal combination of two policy instruments...

Positive political economy is usually concerned with economic explanations of observed policy choices, while the timing of a policy reform has not gained similar attention. This is somewhat surprising since policy makers most often are free to decide both the design and timing of a policy...

We empirically analyze 7,300 agricultural land sales transactions in 2001 and 2007 to identify factors influencing agricultural land sales prices in Bavaria. To account for the importance of space in land markets, we utilize a general spatial model including a spatial lag and a spatial error....

This survey provides a structured picture of 40 years of literature which uses welfare economic tools to judge agricultural policy. Challenges and developments of normative agricultural policy analysis are discussed in an easily accessible graphical framework. It is shown how the literature has...