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The Economics Of Decoupled Payments In The Presence Of Cheating

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  • Giannakas, Konstantinos
  • Fulton, Murray E.

Abstract

This paper introduces enforcement costs and farmer misrepresentation into the economic analysis of decoupled area payments. When enforcement is costly, complete deterrence of cheating is never optimal from an economic perspective. Misrepresentation changes the welfare effects of the policy instrument, its transfer efficiency, and the socially optimal income redistribution.

Suggested Citation

  • Giannakas, Konstantinos & Fulton, Murray E., 1998. "The Economics Of Decoupled Payments In The Presence Of Cheating," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20849, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea98:20849
    DOI: 10.22004/ag.econ.20849
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    References listed on IDEAS

    as
    1. Julian M. Alston & Brian H. Hurd, 1990. "Some Neglected Social Costs of Government Spending in Farm Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(1), pages 149-156.
    2. Bruce Gardner, 1983. "Efficient Redistribution through Commodity Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(2), pages 225-234.
    3. Charles L. Ballard & Don Fullerton, 1992. "Distortionary Taxes and the Provision of Public Goods," Journal of Economic Perspectives, American Economic Association, vol. 6(3), pages 117-131, Summer.
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    Cited by:

    1. Williams, Gary W., 1998. "Discussant'S Comments For American Agricultural Economics Association Annual Meeting, Selected Papers Session Sp-3t, "Agricultural Trade And Policy Analysis"," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20793, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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