Document Type

Article

Publication Version

Published Version

Publication Date

4-1993

Journal or Book Title

Economic Development and Cultural Change

Volume

41

Issue

3

First Page or Article ID Number

605

Last Page

621

Abstract

This paper analyzes the incidence of agricultural commodity programs. Producers advocate commodity programs and receive price subsidies, but free entry and perfectly elastic supplies of nonland inputs ensure that landowners extract the entire surplus from price subsidies. Moreover, an increase in the target price raises the land rent more than proportionately. Although landless producers benefit from commodity programs in the short run, they do not in the long run. Roughly 60 percent of program benefits go to producers who own land, and the remainder to landowners.

Comments

This article is from Economic Development and Cultural Change 41 (1993): 605–621. Posted with permission.

Copyright Owner

The University of Chicago

Language

en

File Format

application/pdf

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