Casamatta, Georges; Rausser, Gordon C.; Simon, Leo K. - Department of Agricultural and Resource Economics, … - 2008
We show that, when there is joint production of an agricultural good and rural amenities, the first-best allocation of … resources can be implemented with a tax on the agricultural good and some subsidies on the production factors (land and labor …). The use of a subsidy on the agricultural good can only be explained by the desire of the policymaker to redistribute …