This paper goes beyond orthodox considerations of direct payment effects on agricultural output, by highlighting the role of subsidies in affecting individual producers' ability to cover fixed costs, and in distorting the volume of aggregate production and net trade by implicitly discouraging exits. The theoretical model considers both taxpayer and consumer financed decoupled direct payment schemes and compares them to a coupled production subsidy...
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INFORMATION
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2001/07/01
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Document de travail
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34067
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1
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1
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2010/07/01
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Disclosed
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Disentangling the consequences of direct payment schemes in agriculture on fixed costs, exit decisions and output
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direct payment
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