The (still) mysterious case of agricultural protectionism
Existing research demonstrates why farmers demand subsidies, but remains ambiguous as to why consumers/taxpayers support or rather do not oppose such subsidies. We approach this puzzle from two angles: how sensitive are citizens to cost implications of agricultural subsidies, and what is their “value function” with respect to agricultural policy? We argue that farm subsidies, besides benefiting farmers, promise to generate an array of non-market goods that serve various interests in society and...[Show more]
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