This paper examines the domestic and international impacts of the United States' Export Enhancement Program (EEP) in the wheat market. EEP uses targeted in-kind subsidies to expand U.S. exports and was specifically designed to compete with subsidized exports from the European Community (EC)....

When modeling discriminatory trade policies -- such as targeted embargoes, selective quotas, targeted export or import subsidies, or preferential trading agreements -- failure to explicitly include assumptions about arbitraging behavior may yield to misleading results. Quadratic programming...