DOMESTIC SUPPORT AND WTO NEGOTIATIONS FROM DEVELOPING COUNTRIES' PERSPECTIVES

International Relations/Trade,

TESTS OF MONETARY NEUTRALITY ON FARM OUTPUT

According to the monetary neutrality hypothesis, only the unanticipated money supply growth has impacts on real economic variables, and the anticipated money supply growth has no real impacts. The monetary neutrality hypothesis is tested on real farm output. The test procedure involves joint estimation of farm output and the money growth equation. The empirical results show that the anticipated money supply growth does have significant effects on farm output and, thus, do not support the monetary neutrality hypothesis.Financial Economics,

An Evaluation of Canadian and U.S. Policies of Log and Lumber Markets

The recent lumber trade war between Canada and the United States deals with Canadian stumpage policies, Canada’s log export controls, and U.S. retaliatory duty. This study determines the appropriate level of U.S. countervailing duty (CVD) by employing a vertically interrelated log–lumber model. The theoretical results show that the U.S. CVD can be greater (will be less) than the Canadian subsidy for a vertically related log–lumbermarket (for lumber market only). Empirical results support the theoretical findings in that the U.S. CVD for the log–lumber market (lumber market alone) is 1.55 (0.91) times the Canadian subsidy.countervailing duty, dispute, log, lumber, subsidy, Agribusiness, Agricultural and Food Policy, International Relations/Trade, Political Economy, F13,

Contributions of Immigrant Farmworkers to California Vegetable Production

A major concern with immigrants coming into the United States is that they adversely affect domestic workers through job competition and wage depression.We study the displacement and wage reduction effects of immigrants in California vegetable production, which is labor intensive, and 95% of the farmworkers in California are immigrants. Our findings show that this concern is not valid in vegetable production because the addition of one new immigrant displaces only 0.0123 domestic workers, and wage reduction is inconsequential. But one immigrant worker increases the vegetable production by $23,457 and augments the productivity of skilled workers, material inputs, and capital by$11,729.employment displacement, immigrant labor, vegetable production, wage effect, Agribusiness, Crop Production/Industries, Food Consumption/Nutrition/Food Safety, Production Economics, Productivity Analysis, J43, J61,

Efficient Land Tenure Contract Under Asymmetric Information

Land Economics/Use,

Ethanol Trade between Brazil and the United States

The United States has used tax credit and mandate to promote ethanol production. To offset the tax credit availed by the imported ethanol, the United States instituted an import tariff. This study ascertains the appropriate U.S. ethanol import tariff corresponding to the U.S. domestic policies by setting the policy-induced ethanol price equal to the free market price. The theoretical results from a horizontally-related ethanol-gasoline partial equilibrium model of three countries (the United States, Brazil, and the Rest of the World) show that the United States should provide an import subsidy rather than impose a tariff. The empirical results quantify that this import subsidy is $0.10, instead of a$0.57 import tariff, per gallon of ethanol.ethanol imports, mandate, subsidy, tariff, tax credit, International Relations/Trade, F13,

Contributions of U.S. Crop Subsidies to Biofuel and Related Markets

The U.S. crop subsidies provide incentives for farmers to expand feedstock production, which benefits the biofuel producers by lowering input costs. This study develops a general equilibrium model to analyze the effects of a reduction in the U.S. crop subsidy on biofuel industries and social welfare. The impacts of feedstock policies on the biofuel market are marginal. In contrast, the biofuel mandate has a larger impact and counteracts the effects of the crop subsidy reduction. The mandate increases the demand for feedstock and causes not only grain ethanol, but also cellulosic ethanol production to rise. The mandate exacerbates the distortion, and government spending increases significantly, leading to greater welfare loss.biofuel, environmental impacts, farm supports, welfare analysis, Agribusiness, Agricultural and Food Policy, Agricultural Finance, Community/Rural/Urban Development, Crop Production/Industries, Environmental Economics and Policy, Farm Management, Financial Economics, Land Economics/Use, Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy, Q18, Q27,

Is the U.S. Import Tariff on Brazilian Ethanol Justifiable?

The United States has used tax credits and mandates to promote ethanol production. To offset the tax credits received by imported ethanol, the United States instituted an import tariff. This study provides insights about the quantitative nature of a U.S. trade policy that would establish a free-market price for ethanol, given the U.S. ethanol mandate and tax credit. The theoretical results from a horizontally related ethanol-gasoline partial equilibrium model show that the United States should provide an import subsidy rather than impose a tariff. The empirical results quantify that this import subsidy is 9 cents, instead of a 57 cent import tariff, per gallon of ethanol.ethanol imports, mandate, subsidy, tariff, tax credit, International Relations/Trade, Resource /Energy Economics and Policy,

Recent U.S. and China's Trade Issues

International Relations/Trade,

Oligopsony Distortions and Welfare Implications of Trade

While imperfect competition in the output market has garnered extensive focus in the new trade theory literature, input market imperfection has received considerably less attention. Since market power in input purchase has been growing in recent years, it is worth examining the welfare implications of trade arising from oligopsony power. We develop a model consisting of two final goods, one intermediate good, and two primary factors (capital and labor). One final good and the intermediate good employ primary factors, whereas the other final good uses labor and the intermediate input. All markets operate under perfect competition except for the intermediate input, which is oligopsonistic. Using this model, we show that oligopsony can lead to some anomalies such as an increase in the oligopsony output, reward to the intensive-factor in the oligopsony sector, national welfare, and deterioration of terms of trade, but it always decreases the reward to the intermediate input.Marketing,