“Decoupled” Farm Program Payments are Really Decoupled: The Theory
证明，当农民拥有非农投资和就业机会时，一次性补贴在风险和不确定性下不会影响生产决策，此前观察到的生产调整实为投资组合调整。
Abstract Lump‐sum transfers to farmers are commonly believed to affect the production choices of farmers in the presence of risk and uncertainty. This paper shows that if farmers have off‐farm investment and employment opportunities, production decisions are decoupled from lump‐sum subsidies in the presence of risk and uncertainty. Our results are reconciled with existing results by showing that previously identified production adjustments are portfolio adjustments.