Storage Subsidies and Supply Response
研究储存补贴如何影响农户的供给决策，发现补贴会促使风险规避和风险中性的农户都扩大产量，建议在估计供给反应时纳入储存补贴因素。
E. Kwan Choi is an associate professor of economics ow a State University, and CARD faculty member; W. H. Meyers is professor of economics and associate director, CARD. This paper investigates the supply response to a storage subsidy. From the ex post sales decision problem we derive the reservation price below which all risk averse farmers hold some inventory. While sales and storage decisions are made ex post, production decisions are made ex ante before the current market price is known. Storage subsidies are shown to encourage risk averse as well as risk neutral farmers to expand output. The analysis implies that storage subsidies should be incorporated in estimating supply response. STORAGE SUBSIDIES AND SUPPLY RESPONSE 1.