, governments face a trade-off: they are tempted to restrict pesticide use compared to under autarky because domestic consumption …

farming is shown to depend on the prices of pesticide and grain. It is either optimal to use no pesticide or a moderate amount … of pesticide or to apply a chattering control. Pest eradication is never optimal. On the other hand, if the farmer takes … pesticide depending on prices as well as on the shape of the grain production function which is determined by micro parameters …