Agricultural & Resource Economics

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    Market Facilitation Program Available to Assist Producers Due to Trade Disputes
    (2018-09) Kuykendall, Olivia; Goeringer, Paul
    The U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) established the Market Facilitation Program (MFP) under Section 5 of the Commodity Credit Corporation (CCC) Charter Act. This section authorizes CCC to assist in the disposition of surplus commodities and to increase the domestic consumption of agricultural commodities by expanding or aiding in the expansion of domestic markets or by developing or aiding in the development of new and additional markets, marketing facilities, and uses for such commodities. MFP provides direct payments to producers of specific products impacted by foreign tariffs.
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    Endogenous Property Rights Regimes, Common Property Resources and Trade Policies
    (2006-09-13) Galinato, Gregmar Ignacio; Chambers, Robert G; Agricultural and Resource Economics; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
    International clamor regarding the potential degradation of the environment in developing countries due to opening to trade has been an important issue that has moved from the streets into academic studies. This dissertation links the effect of opening to trade on resource stocks in developing countries by endogenizing the property rights regime choice. The model explains how communities that have communal ownership of a resource stock select the property rights regime governing the use of their resource stock via a voting mechanism. Then, the impact of opening to trade is linked to the choice of the property rights regime and, ultimately, to stock changes over time. We found that under some plausible assumptions, community members would vote to allow non-community members into the resource sector. Opening to trade, when the country has comparative advantage in the production of resource intensive goods, does result in a decrease in the long-run equilibrium stock. However, as long as property rights regimes are endogenous and the country follows the optimal trajectory path, we find that degrading the resource stock can be an optimal solution. A dynamic common property resource game with two sectors in the economy was designed and implemented to test some of the theoretical results. Experimental results indicated that subjects followed a dynamic path, but not the optimal one. The initial choices of the subjects greatly influenced the path which they take in the future. Without instruments or tools to correct for mistakes made during the initial time periods, communities will most likely follow a non-optimal dynamic path.
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    Renewable Resources as a Factor of Production in International Trade
    (2005-11-04) Anriquez Nilson, Gustavo Adolfo; Lopez, Ramon E; Agricultural and Resource Economics; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
    This work provides an extensive review of the literature on trade and environmental issues that has been growing since the early 1990s. The gaps in this literature are identified and generalizations are provided from results that are scattered. Next, we contribute to this literature by studying a Ricardian model of trade, in which one of the sectors uses a renewable resource as a factor of production. The contribution lies in the study of trade and welfare through the full horizon of the welfare maximization problem, not relying in equilibrium analysis. This study is divided into small country case and a 2 country - 2 factor model. In the first case, we show how trade prevents extinction, and if the assumption of full open access environmental externality is relaxed the welfare expected results change substantially. In the 2 x 2 model we show that equilibrium is actually not possible invalidating many such analyses existing in the literature. This lack of equilibrium may lead the country that is free from environmental externalities to actually lose with trade vis-à-vis autarky.