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Effects of an Export Subsidy on the U.S. Cotton Industry

Author

Listed:
  • Duffy, Patricia A.
  • Wohlgenant, Michael K.
  • Richardson, Jame W.

Abstract

In this study, the effects of an export subsidy for cotton are analyzed using a linear elasticity model. The study explicitly addresses the interaction of current domestic policies with the proposed export subsidy. An export subsidy may be a succesful method of reducing the government costs of the cotton program if beginning price is low relative to the target price and if producer response to higher market prices is low.

Suggested Citation

  • Duffy, Patricia A. & Wohlgenant, Michael K. & Richardson, Jame W., 1988. "Effects of an Export Subsidy on the U.S. Cotton Industry," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270195, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea88:270195
    DOI: 10.22004/ag.econ.270195
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    References listed on IDEAS

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    1. Bruce L. Gardner, 1976. "Futures Prices in Supply Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 58(1), pages 81-84.
    2. Duffy, Patricia A. & Richardson, James W. & Wohlgenant, Michael K., 1987. "Regional Cotton Acreage Response," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 19(1), pages 1-11, July.
    3. C. Richard Shumway, 1983. "Supply, Demand, and Technology in a Multiproduct Industry: Texas Field Crops," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(4), pages 748-760.
    4. Monke, Eric A & Taylor, Lester D, 1985. "International Trade Constraints and Commodity Market Models: An Application to the Cotton Market," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 98-107, February.
    Full references (including those not matched with items on IDEAS)

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