Goetz, Renan U.; Keusch, Alois; Ribas-Tur, Joan - Departament d'Economia, Facultat de Ciències … - 2003
This paper analyzes the optimal behavior of farmers in the presence of direct payments and uncertainty. In an empirical … predicted effects. The results show that direct payments increase agricultural production between 3.7% to 4.8%. Alternatively to … direct payments, the production effect of tax reductions is evaluated in order to determine its magnitude. The empirical …