THE ECONOMICS OF DECOUPLED PAYMENTS IN THE PRESENCE OF CHEATING

This paper introduces enforcement costs and farmer misrepresentation into the economic analysis of decoupled area payments. When enforcement is costly, complete deterrence of cheating is never optimal from an economic perspective. Misrepresentation changes the welfare effects of the policy instrument, its transfer efficiency, and the socially optimal income redistribution.


Issue Date:
1998
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/20849
Total Pages:
14
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2017-08-24

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