Stop‐and‐Go Agricultural Policies
研究政府与农民信息不对称下最优农业政策设计，发现封顶差额补贴加自愿有偿休耕可实现最优结果，且脱钩政策永远不是最优。
Abstract The optimal design of farm policy and public investment in agriculture in the presence of asymmetric information between the government and farmers is studied. It is shown that a mix of capped deficiency payments and voluntary paid land diversion can implement the optimal policy outcome. Optimal program design requires large farmers to farm all their land, and small farmers may or may not divert acreage. Decoupled policies are never optimal.