Open Access. Powered by Scholars. Published by Universities.®
Social and Behavioral Sciences Commons™
Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 2 of 2
Full-Text Articles in Social and Behavioral Sciences
The Dynamic Effects Of Agricultural Subsidies In The United States, Harry De Gorter, Eric O'N. Fisher
The Dynamic Effects Of Agricultural Subsidies In The United States, Harry De Gorter, Eric O'N. Fisher
Economics
This article analyzes the dynamic effects of the farm subsidies in the United States. The subsidies a farmer receives are based upon historical plantings, also called base acreage. It is sometimes optimal for a farmer temporarily not to participate in a program in order to increase future subsidies. The farmer's optimal policy is the solution to a deterministic dynamic program. Farmers with low base acreage opt out of these programs, whereas those with high base acreage participate in them. The article examines aggregate data involving corn, cotton, rice, and wheat during 1987. It shows that these programs increase the output …
The International Effects Of U.S. Farm Subsidies, Eric O'N. Fisher, Harry De Gorter
The International Effects Of U.S. Farm Subsidies, Eric O'N. Fisher, Harry De Gorter
Economics
Using dynamic programming, this paper examines effects of farm subsidies on U.S. exports of corn, cotton, rice, and wheat. The six policy simulations described here explore alternative proposals in the current round of the General Agreement on Tariffs and Trade. The analysis leads to two conclusions. First, abolishing domestic subsidies lowers world prices of these crops. Second, imposing tighter supply controls may not actually decrease exports in the short run.