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.
Copyright Owner
The University of Chicago
Copyright Date
1993
Language
en
File Format
application/pdf
Recommended Citation
Choi, E. Kwan and Johnson, Stanley R., "Impacts and Incidence of Agricultural Commodity Programs" (1993). Economics Publications. 20.
https://lib.dr.iastate.edu/econ_las_pubs/20
Included in
Agricultural and Resource Economics Commons, Agricultural Economics Commons, Growth and Development Commons
Comments
This article is from Economic Development and Cultural Change 41 (1993): 605–621. Posted with permission.