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Least‐Cost Subsidization Alternatives
Author(s) -
Chambers Robert G.
Publication year - 1985
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1240676
Subject(s) - subsidy , economics , class (philosophy) , natural resource economics , microeconomics , public economics , computer science , market economy , artificial intelligence
This paper considers least‐cost subsidy alternatives for agriculture in an optimal tax framework. The goal of farm policy is presumed to be the economic survival of a particular class of farmers. Least‐cost formulas for linear subsidies are derived. It is shown that output subsidization alone will generally not be least cost.