The production effects of agricultural income support policies under uncertainty

被引:249
作者
Hennessy, DA [1 ]
机构
[1] Iowa State Univ, Dept Econ, Ames, IA 50011 USA
关键词
coupling effects; decoupled support; insurance effects; wealth effects;
D O I
10.2307/3180267
中图分类号
F3 [农业经济];
学科分类号
0202 ; 020205 ; 1203 ;
摘要
This analysis decomposes the production impacts of income support programs into wealth, insurance, and coupling effects. Under the usual assumptions about preferences, the wealth and insurance effects of many support programs increase optimal input levels even for supposedly decoupled programs. If the program is "coupled" in the usual sense, then all three effects often act in the same direction. It is concluded that studies of trade and domestic policy reform in stochastic environments should consider insurance and wealth effects. The derivative conditions required to obtain results are also subjected to scrutiny. Simulations for an Iowa corn producer confirm the comparative statics.
引用
收藏
页码:46 / 57
页数:12
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