Efficiency of Decoupled Farm Programs under Distortionary Taxation

dc.contributor.author Moschini, GianCarlo
dc.contributor.author Sckokai, Paolo
dc.contributor.author Moschini, Giancarlo
dc.contributor.department Center for Agricultural and Rural Development
dc.date 2018-02-17T14:35:45.000
dc.date.accessioned 2020-06-30T04:00:24Z
dc.date.available 2020-06-30T04:00:24Z
dc.date.copyright Sat Jan 01 00:00:00 UTC 1994
dc.date.embargo 2016-03-16
dc.date.issued 1994-03-01
dc.description.abstract <p>When lump-sum taxation is not feasible, decoupled transfers to farmers (which require raising government revenue) will entail welfare loss somewhere in the economy. Assuming the government's objective is to assure a given welfare level for farmers, we show that when decoupling is possible, free trade is always superior to some tariff protection for a small country, even under Distortionary taxation. As expected, for a large country there is scope for an optimal tariff policy that improves the terms of trade. However, we show a separation between the exercise of market power through an optimal tariff, and the interaction of Distortionary taxation with transfers to farmers. We conclude that decoupling is usually desirable, even in a distorted economy in which lump-sum taxation is not feasible.</p>
dc.identifier archive/lib.dr.iastate.edu/gatt_papers/24/
dc.identifier.articleid 1013
dc.identifier.contextkey 8327272
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath gatt_papers/24
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/37671
dc.source.bitstream archive/lib.dr.iastate.edu/gatt_papers/24/94gatt5.pdf|||Fri Jan 14 22:51:10 UTC 2022
dc.subject.disciplines Agricultural and Resource Economics
dc.subject.disciplines Agriculture
dc.subject.disciplines Taxation
dc.subject.keywords Agriculture
dc.subject.keywords Taxation
dc.subject.keywords Economic Development
dc.title Efficiency of Decoupled Farm Programs under Distortionary Taxation
dc.type article
dc.type.genre article
dspace.entity.type Publication
relation.isAuthorOfPublication 875efd32-d51f-480d-8d4b-3d87da3f2678
relation.isOrgUnitOfPublication 1a6be5f1-4f64-4e48-bb66-03bbcc25c76d
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