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Effects of Government Policy on Agriculture: An Empirical Analysis

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  • Lamm, R. McFall Jr.

Abstract

Most empirical efforts to evaluate the effects of government policies on agriculture have considered policies applied to specific commodity sectors. The results have been the construction of a number of highly specialized sector models which ignore cross-sector policy effects. This paper presents the results of an attempt to construct an aggregate model of agriculture which considers jointly all major agricultural policies implemented over the last 3 decades. The results indicate that government intervention in agriculture generally reduced farm income and production below what it would have been; lead to lower food prices, benefitting consumers; and constrained capital for labor substitution. Government programs did lead to greater price stability, however, which was a basic objective of agricultural programs.

Suggested Citation

  • Lamm, R. McFall Jr., 1980. "Effects of Government Policy on Agriculture: An Empirical Analysis," Economics Statistics and Cooperative Services (ESCS) Reports 329209, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerscs:329209
    DOI: 10.22004/ag.econ.329209
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    References listed on IDEAS

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