The incidence of U.S. agricultural subsidies on farmland rental rates
Name
60315488-MIT.pdf
Description
Full printable version
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2.09 MB
Format
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87031ea9e0c100d6fbe39aa1205b838d
Author(s)
Kirwan, Barrett E., 1974-
Advisor(s)
David H. Autor.
Alternative Title
Incidence of United States agricultural subsidies on farmland rental rates
Date Issued
2004
Publisher
Massachusetts Institute of Technology
Abstract
This paper identifies the effect of agricultural subsidies on farmland rental rates in the United States. Rental agreements are primarily between farmers and non-farmer landlords, but no evidence exists concerning the incidence of subsidies on these two groups. By exploiting a unique policy change in 1996 and a nationally representative dataset of individual farms, I solve the endogeneity problem with fixed effects and instrumental variables techniques. I show that non-farmer landlords capture forty percent of the marginal subsidy dollar per acre. This finding is in sharp contrast to the basic assumptions in the literature that suggest full incidence on the landlords. I discuss possible characteristics of the farmland rental market that would result in less than perfect incidence.
Description
Thesis (S.M.)--Massachusetts Institute of Technology, Dept. of Economics, 2004.
Includes bibliographical references (p. 35-36).
Subjects
Economics.
MIT Department
Massachusetts Institute of Technology. Department of Economics
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