The use of agricultural decoupled support has increased as World Trade Organization (WTO) member nations implement less trade distortive policies. However, the true production effects of these policies are still unclear. We show how the exclusion restrictions of U.S. direct payments, namely, the...

Replaced with revised version of paper on 10/26/10.

We estimate the impact of direct payments under the 2002 Farm Act on the credit terms of farm operators, specifically the interest rate on short-term operating loans. In the analysis, we control for farm financial characteristic, farm operator characteristics, and other factors. Using data from...

This paper formalizes the production and export consequences of direct farm payments. Taxpayer financed direct payments distort exit and production incentives, while consumer financed subsidies also imply that the risks of domestic and export production differ. Welfare decompostion and empirical...

The effectiveness of limits and reductions in both export volumes subsidized and value of export subsidies in agriculture is evaluated. A perspective on consumer versus producer financed export subsidies is given. We analyze factors affecting the effectiveness of volume versus value commitments....

The import regime resulting from the tariffication under the Agreement on Agriculture of the minimum import price scheme protecting fruit & vegetables in the European Union, gives rise to discontinuities in the excess demand, creates competition for rents, and does not allow the full effect of...

Leakage in the fuel market differs, depending on whether ethanol production is determined by a tax credit or consumption mandate. Two components of market leakage are distinguished: domestic and international. Leakage with both a tax credit and a consumption mandate depends on market...

Traditional models of export bonus programs focus only on the effects of disposing public stocks on the world market. We show that the economic effects of export bonus programs are significantly different when one includes the costs of acquiring these stocks. Including stock acquisition costs...

Traditional models of export bonus programs focus only on the effects of disposing public stocks on the world market. We show that the economic effects of export bonus programs are significantly different when one includes the costs of acquiring these stocks. Including stock acquisition costs...

With the prospect of greater uncertainty in world markets, additional progress will be required to minimize the adverse effects of domestic support policies on international trade; otherwise, turbulent global economic conditions will generate even greater uncertainty and instability in world...