By Bruce L. Gardner, Gordon C. Rausser
The subject material of agricultural economics has either broadened and deepened and the chapters of this guide current cutting edge paintings within the box. This quantity includes sections on ''agriculture, typical assets and the environment'' and ''agriculture within the macroeconomy''. quantity 2B completes the guide with a bit on ''agriculture and foodstuff policy''. even supposing agricultural economists have continually paid awareness to those issues, learn dedicated to them has elevated considerably in scope in addition to intensity lately
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1. 2. 3. Implementability of second-best mechanisms under hidden information 4. 1. 1. 2. 3. 2. 3. 1. 2. Information and application efficiency 5. 1. Agricultural price and income policies Handbook of Agricultural Economics, Volume 2, Edited by B. Gardner and G. V. All rights reserved 1250 1250 1251 1252 1252 1255 1256 1258 1260 1262 1264 1267 1268 1269 1270 1272 1274 1276 1280 1282 1282 1284 1286 1288 1288 1290 1291 1292 1295 1296 1250 E. 2. 3. Input subsidies 6. Concluding remarks Acknowledgements References 1299 1300 1302 1304 1305 Abstract The distinctive nature of environmental quality problems in agriculture - an industry based on the extraction of highly variable natural resom'ces under stochastic conditions - has important implications for policy design.
So far we have assumed that producers consider the full social cost of 0 in their investment decisions. In reality, institutions in LDCs are very imperfect and at least part of the natural resources are open access and/or common property with highly imperfect social control of their use. We consider here these cases. The easiest way of looking at this is by considering the value of the shadow price of natural resources, ~7in our model. Imperfections in the market for natural resources will be reflected in the actual value of ~ that is taken into consideration in resource allocation decisions.
Section 3 explores the implications of heterogeneity for environmental policy design. As noted above, agricultural production occurs largely under naturally occurring conditions. Thus, stochastic factors exert significant influence on both agricultural productivity and environmental quality. Section 4 explores the implications of uncertainty for environmental policy design. For millennia, agriculture has been central to human existence. The irreducible human need for food has led governments in virtually all countries to adopt policies re- 1252 E.
Agriculture and its External Linkages by Bruce L. Gardner, Gordon C. Rausser