Using dynamic programming, this paper examines effects of farm subsidies on U.S. exports of corn, cotton, rice, and wheat. The six policy simulations described here explore alternative proposals in the current round of the General Agreement on Tariffs and Trade. The analysis leads to two conclusions. First, abolishing domestic subsidies lowers world prices of these crops. Second, imposing tighter supply controls may not actually decrease exports in the short run.
The purpose of the American Journal of Agricultural Economics is to provide a forum for creative and scholarly work in agricultural economics. Submitted manuscripts focus on the economics of natural resources and the environment, agriculture, and rural and community development. Papers are problem-oriented and demonstrate originality and innovation in analysis, methods, or application. Analyses of problems pertinent to research, extension, and teaching are included, as well as interdisciplinary research with a significant economic component. Review articles that offer a comprehensive and insightful survey of a relevant subject, consistent with the scope of the journal, are also included. All articles published are held to the same set of scholarly standards.
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American Journal of Agricultural Economics
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