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This article analyses how transaction costs and imperfect competition in the land market affect the welfare effects of agricultural subsidies in the new Eastern Member States of the European Union. Benefits of land subsidies end up with landowners in new Eastern Member States also with...
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Standard analyses of social benefits of public agricultural research expenditures in the presence of commodity policies take the commodity policy as fixed. In reality governments adjust commodity policy levels when the research has important income distributional effects. We use two examples of...
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This article shows that credit market imperfections have important implications for the distribution of policy rents. In a model with land as fixed factor and credit market imperfections, when an area payment is given, land rents go up by more than the subsidy. On aggregate farms may lose from...
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