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Price versus Quota Reductions: U.S. Flue-Cured Tobacco Policy

Опубликовано на портале: 21-02-2005
Journal of Agricultural and Applied Economics. 1996.  Vol. 28. No. 2. P. 445-452. 
Declining domestic cigarette consumption, increased global competition, and loss of import restrictions indicate decreased demand for U.S. flue-cured tobacco. The effects of 10% declines in domestic and export demand are evaluated under a policy of reducing quota to maintain price versus a policy of allowing price to fall to maintain quota. Changes in prices, quantities, revenues, and economic rents are simulated. Losses to non farming quota owners are minimized under a policy of price maintenance, while losses in revenues to tobacco-producing areas are minimized by a policy of quota maintenance. Aggregate losses to tobacco growers are greater under a policy of quota maintenance.

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