This chapter first discusses what economists mean by “the incidence of agricultural policy” and why we care about it. Then it reviews models of the determinants of the differential incidence of different policies among interest groups such as suppliers of factors of production, consumers,...

This paper examines whether a central bank digital currency (CBDC) reinforces inefficiencies in transactions with cash. In this case, the gap between the traded quantity and the welfare-maximizing one, which arises due to discounting or a suboptimal amount of money, increases further. To get...

We develop a simple two-region, cobweb-type dynamic equilibrium model to demonstrate the existence of optimal trade barriers. A pure comparative statics analysis of our model suggests that a reduction of trade barriers always enhances welfare. However, taking a dynamic perspective reveals that...