Decoupled payment, domestic subsidy and trade barrier under imperfect competition
研究在农产品加工环节存在不完全竞争时，引入脱钩支付的最优改革路径，发现政府可能面临贸易壁垒与补贴之间的权衡。
This paper investigates the optimal reform of introducing decoupled payments in the agrofood sector. The model captures the vertical structure of the sector where the domestic processors exert potential oligopsony power towards farmers and compete with foreign firms in the home market. The results suggest that the government may face a potential trade-off of introducing decoupled payment, while committing to the restriction of trade barriers. The presence of imperfect competition makes it more likely for the government to keep a high level of trade barriers and production subsidy after the introduction of decoupled payment.