This paper fills the gap of modeling positive externality cases when private marginal cost is higher than social marginal cost. Within this unique type of divergence of marginal costs two cases are scrutinized: social marginal benefit being higher than private marginal benefit, and vice versa,...

This document is the technical annex to the full paper “The Complexities of the Interface between Agricultural Policy and Trade†which is available separately.

Tariff and non-tariff barriers are widespread as applied to agricultural trade. The theory of gains from trade considers the impacts of free trade relative to no trade and to non-tariff barriers, while the theory of agricultural policy generally places little weight on the international trading...

This paper considers how the welfare of U.S. sugar producers can be affected by the use of production controls in the presence of rising sugar imports and falling sugar prices, taking into account the negative externalities associated with U.S. sugar production. Even if production controls are...

The emergence of E-commerce in the 1990s heralded the arrival of the New Economy. However, the failure of numerous dotcoms since early 2001 has led to a debate regarding the future direction of E-commerce and its potential relevance for agribusiness. This study examines the economic implications...

The increase in energy prices between 2004 and 2007 has several potential consequences for aggregate agriculture in the U.S. We estimate the derived input demand elasticities for energy as well as capital, labor, and materials using the differential supply formulation. Given that the derived...

The degree of vertical integration in the U.S. sugar industry between raw sugar processing and sugar refining cannot be explained using theories of vertical integration based on transaction costs (e.g. Williamson). We graphically decompose the economic rents accruing to each level in the...