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This is the first paper to analyze the impact of biofuels on the price transmission along the food chain. We analyze the U.S. corn sector and its vertical links with food and ethanol (energy) markets. We find that biofuels affect the price transmission elasticity in the food chain compared to a...
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In this paper we estimate the impact of agricultural subsidies granted under the European Union's Common Agricultural Policy (CAP) on bank loans extended to farms. According to our theoretical analysis, subsidies may either stimulate or crowd out bank loans depending on the timing of subsidies,...
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We develop a formal model of EU decision-making on the Common Agricultural Policy (CAP). The model is used to evaluate under what conditions CAP reform occurs and what the influence of the European Commission (Commission) is on CAP reform. We find that the voting and amendment rules in the...
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