Front cover; Handbook of Agricultural Economics. Agricultural Development: Farmers, Farm Production and Farm Markets; Copyright page; Introduction to the Series; Contents of the Handbook; Contents of Volume 3; Part 1: Introduction; Overview; Part 2: Human Resources and Technology Mastery; Chapter...

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