emphasis on corn-based ethanol, on the U.S. economy. The modelspecification incorporates world and domestic markets, assumes … ethanol. The model is calibrated to represent a recent benchmark data set for 2009 andis used to simulate the positive and … normative effects of alternative policies. We find that asecond best policy of a fuel tax and ethanol subsidy approximates …

growing feedstock for ethanol (corn, sorghum, wheat,sugarcane, and other grains) and major crops competing with feedstock for … land resources suchas oilseeds. We shock the model with exogenous changes in ethanol demand, first in the UnitedStates … for ethanol. Land moves awayfrom major crops and pasture competing for resources with feedstock crops. Because of the …

evidence that corn ethanol mandates have created a tight link between oil and agricultural markets. Rather increases in food …