Title: Credit Market Imperfections and the Distribution of Policy Rents
Authors: CIAIAN PavelSWINNEN Johan
Citation: AMERICAN JOURNAL OF AGRICULTURAL ECONOMICS vol. 91 no. 4 p. 1124-1139
Publication Year: 2009
JRC N°: JRC54050
ISSN: 0002-9092
URI: http://ajae.arec.umd.edu/
DOI: 10.1111/j.1467-8276.2009.01311.x
Type: Articles in periodicals and books
Abstract: This article shows that credit market imperfections have important implications for the distribution of policy rents. In a model with land as fixed factor and credit market imperfections, when an area payment is given, land rents go up by more than the subsidy. On aggregate farms may lose from the subsidy. The results depend on the extent to which subsidies have direct and indirect effects on the credit constraints, on whether farms rent or own land, and on farm heterogeneity.
JRC Directorate:Growth and Innovation

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