Postprint version. Published in Handbook of Agricultural Economics, Volume 2, January 1, 2002, pages 1689-1749.
NOTE: At the time of publication, the author Jennifer S. James was not yet affiliated with Cal Poly.
The definitive version is available at https://doi.org/10.1016/S1574-0072(02)10020-X.
This chapter first discusses what economists mean by "the incidence of agricultural policy" and why we care about it. Then it reviews models of the determinants of the differential incidence of different policies among interest groups such as suppliers of factors of production, consumers, middlemen, taxpayers, and others. Results are represented in terms of Marshallian economic surplus, and surplus transformation curves. After reviewing the results from standard models under restrictive assumptions, certain assumptions are relaxed in order to analyze the effects of imperfect supply controls, variability, cheating and imperfect enforcement of policies, and the dynamics of supply.
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