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Sheremenko, Ganna; Epperson, James E.. |
The elimination of the quota and price support program in 2004 meant limited government intervention and made U.S. tobacco producers more vulnerable to market risks. In this paper we provide an examination of the situation in the U.S. tobacco industry before and after the buyout and identify how the enacted policy change affected the U.S. tobacco industry in terms of supply and demand. The supply and demand system is estimated using the generalized method of moments (GMM). The results suggest that the buyout, which began with lowering the price for tobacco as well as increasing the cost of production, had a negative impact on the number of farmers in the United States as it declined substantially after 2004. However, tobacco producers who remained in the... |
Tipo: Conference Paper or Presentation |
Palavras-chave: Agricultural and Food Policy. |
Ano: 2011 |
URL: http://purl.umn.edu/98630 |
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