Technological heterogeneity is an important issue in studies of agricultural production. We assume that this is much more serious in transition countries, since the agricultural sector in these countries is characterized by the presence of even more different technologies and structures....

Pesticides efficiency decreases with their global application by farmers. Within a strategic dynamic framework, this results in a classic intertemporal production externality. We analyze tax and subsidy schemes that can be used in order to internalize this externality. We show that they are able...