The not-so-simple economics of production quota buyouts

Andrew Schmitz, Dwayne Haynes, Troy Schmitz

Research output: Contribution to journalReview article

1 Scopus citations

Abstract

This article updates and expands the literature on the impact of production quotas. Unlike many of the early studies, our focus is largely on the removal of production quota programs. We study cases wherein production quota programs have been eliminated and quota owners were compensated for their losses. Specifically, we examine (1) production quotas in both the absence and presence of trade, (2) production quota buyouts (three case studies), (3) sources of funding, and (4) general equilibrium considerations. A fifth section briefly discusses externalities, the interpretation of consumer surplus measures, and the nature of conducting economic analyses of addictive goods.

Original languageEnglish (US)
Pages (from-to)119-147
Number of pages29
JournalJournal of Agricultural & Applied Economics
Volume48
Issue number2
DOIs
StatePublished - May 1 2016

Keywords

  • Agricultural policy
  • buyout
  • production quotas
  • tobacco

ASJC Scopus subject areas

  • Environmental Science(all)
  • Earth and Planetary Sciences(all)

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