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Decoupled Programs, Payment Incidence, and Factor Markets: Evidence from Market Experiments AgEcon
Bastian, Christopher T.; Nagler, Amy M.; Menkhaus, Dale J.; Ehmke, Mariah D.; Whitaker, James B.; Young, C. Edwin.
We use laboratory market experiments to assess the impact of asymmetric knowledge of a per-unit subsidy and the effect of a decoupled annual income subsidy on factor market outcomes. Results indicate that when the subsidy is tied to the factor as a per-unit subsidy, regardless of full or asymmetric knowledge for market participants, subsidized factor buyers distribute nearly 22 percent of the subsidy to factor sellers. When the subsidy is fully decoupled from the factor, as is the case with the annual payment, payment incidence is mitigated and prices are not statistically different from the no-policy treatment.
Tipo: Conference Paper or Presentation Palavras-chave: Laboratory market experiments; Agricultural subsidies; Subsidy incidence; Land market; Ex ante policy analysis; Agricultural and Food Policy; Institutional and Behavioral Economics; Q18; D03; C92.
Ano: 2011 URL: http://purl.umn.edu/104108
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Subsidy Incidence in Agricultural Land Markets: An Experimental Investigation AgEcon
Nagler, Amy M.; Menkhaus, Dale J.; Bastian, Christopher T.; Ehmke, Mariah D..
We use laboratory market experiments to control for market power and social norms in order to evaluate market outcomes associated with subsidy incidence. We estimate the incidence of a stylized agricultural subsidy in laboratory land rental negotiations and compare the market behavior of university students to agricultural professionals. In separate sessions with both subject groups, 21.5 percent of a per-unit subsidy paid to the buyer (tenant) was passed on to sellers (landlords). The consistent treatment effect between students and professionals is encouraging, particularly in the use of experimental laboratory methods for ex ante analyses of agricultural policy impacts.
Tipo: Conference Paper or Presentation Palavras-chave: Agricultural subsidies; Ex ante policy analysis; Laboratory market experiments; Land market; Professional versus student subject pools; Subsidy incidence; Agricultural and Food Policy; Institutional and Behavioral Economics; Q1; Q18; C92.
Ano: 2011 URL: http://purl.umn.edu/103032
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