Is it possible to reduce income disparity of agriculture by farm income supporting policy measures
1995
Schmitt, G. (Goettingen Univ. (Germany). Institut fuer Agraroekonomie)
In this article the effects of farm income supporting policy measures on resource allocation and income distribution are analysed based on the theory of farm households. These measures are aiming towards a reduction of disparity of farm income and farm household income relativ to nonfarm household income. Farm income supporting policy measure are defined and analysed separately as subsidies and transfer payments. In addition compensation of income effects of reduced producer prices by transfer payments in the context of EEC farm policy reform is discussed. Beside of a comparative-static a dynamic analyses is presented by analysing the effects of rising wage rates on allocation and income distribution.
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