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Stop‐and‐Go Agricultural Policies
[Politiques agricoles "Stop and Go"]

Author

Listed:
  • Jean-Marc Bourgeon

    (ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - AgroParisTech, UPN - Université Paris Nanterre, University of Maryland - Department of Agricultural and Resource Economics)

  • Robert Chambers

    (University of Maryland - Department of Agricultural and Resource Economics)

Abstract

The optimal design of farm policy and public investment in agriculture in the presence of asymmetric information between the government and farmers is studied. It is shown that a mix of capped deficiency payments and voluntary paid land diversion can implement the optimal policy outcome. Optimal program design requires large farmers to farm all their land, and small farmers may or may not divert acreage. Decoupled policies are never optimal.

Suggested Citation

  • Jean-Marc Bourgeon & Robert Chambers, 2000. "Stop‐and‐Go Agricultural Policies [Politiques agricoles "Stop and Go"]," Post-Print hal-02968356, HAL.
    • Handle: RePEc:hal:journl:hal-02968356
    DOI: 10.1111/0002-9092.00001
    as

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    Cited by:

    1. Paul Allanson, 2007. "Classical Horizontal Inequities in the Provision of Agricultural Income Support," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(4), pages 656-671.
    2. Carl GAIGNÉ & Cathie LAROCHE DUPRAZ & Alan MATTHEWS, 2015. "Thirty years of European research on international trade in food and agricultural products," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 96(1), pages 91-130.
    3. Feng, Hongli, 2007. "Green payments and dual policy goals," Journal of Environmental Economics and Management, Elsevier, vol. 54(3), pages 323-335, November.
    4. Bourgeon, Jean-Marc, 2002. "The Common Tragedy of Regulations," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24819, European Association of Agricultural Economists.
    5. Hendricks, Nathan P. & Er, Emrah, 2018. "Changes in cropland area in the United States and the role of CRP," Food Policy, Elsevier, vol. 75(C), pages 15-23.
    6. Hudson Darren & Lusk Jayson, 2004. "Risk and Transactions Cost in Contracting: Results from a Choice-Based Experiment," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 2(1), pages 1-19, February.
    7. Bontems, Philippe, 2008. "On the optimal design of income support and agri-environmental regulation," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6246, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Crepin, Anne-Sophie, 2005. "Incentives for wetland creation," Journal of Environmental Economics and Management, Elsevier, vol. 50(3), pages 598-616, November.
    9. Sheriff, Glenn, 2008. "Optimal environmental regulation of politically influential sectors with asymmetric information," Journal of Environmental Economics and Management, Elsevier, vol. 55(1), pages 72-89, January.

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