(This abstract was borrowed from another version of this item.)"> (This abstract was borrowed from another version of this item.)">
[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/ags/aaea87/269963.html
   My bibliography  Save this paper

Tax Policy and U.S. Agriculture: A General Equilibrium Analysis

Author

Listed:
  • Hertel, Thomas W.
  • Tsigas, Marinos E.
Abstract
This article emloys a computable general equilibrium model to analyze the effects of eliminating farm and food tax preferences in 1977. Tax differentials on capital income, labor payments, and production and sales taxes are each examined. Results indicate that these combined preferences lowered food costs by about $4.5 billion while enhancing after-tax returns to farm land, labor, and capital. The associated general equilibrium tax expenditure is estimated to have been between $5.5 and $6.6 billion.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Hertel, Thomas W. & Tsigas, Marinos E., 1987. "Tax Policy and U.S. Agriculture: A General Equilibrium Analysis," 1987 Annual Meeting, August 2-5, East Lansing, Michigan 269963, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea87:269963
    DOI: 10.22004/ag.econ.269963
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/269963/files/aaea-1987-065.pdf
    Download Restriction: no
    File URL: https://ageconsearch.umn.edu/record/269963/files/aaea-1987-065.pdf?subformat=pdfa
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.269963?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Michael Boehlje & Hoy Carman, 1982. "Tax Policy: Implications for Producers and the Agricultural Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(5), pages 1030-1038.
    2. Fuss, Melvyn & McFadden, Daniel, 1978. "Production Economics: A Dual Approach to Theory and Applications (II): Applications of the Theory of Production," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, volume 2, number fuss1978a.
    3. V. Eldon Ball, 1985. "Output, Input, and Productivity Measurement in U.S. Agriculture 1948–79," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(3), pages 475-486.
    4. Fuss, Melvyn & McFadden, Daniel (ed.), 1978. "Production Economics: A Dual Approach to Theory and Applications," Elsevier Monographs, Elsevier, edition 1, number 9780444850133.
    5. Shoemaker, Robbin, 1986. "Effects of Changes in U.S. Agricultural Production on Demand for Farm Inputs," Technical Bulletins 157024, United States Department of Agriculture, Economic Research Service.
    6. Hans P. Binswanger, 1974. "A Cost Function Approach to the Measurement of Elasticities of Factor Demand and Elasticities of Substitution," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(2), pages 377-386.
    7. Huang, Kuo S & Haidacher, Richard C, 1983. "Estimation of a Composite Food Demand System for the United States," Journal of Business & Economic Statistics, American Statistical Association, vol. 1(4), pages 285-291, October.
    8. Gregory D. Hanson & Vernon R. Eidman, 1985. "Agricultural Income Tax Expenditures—A Microeconomic Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(2), pages 271-278.
    9. Ballard, Charles L. & Fullerton, Don & Shoven, John B. & Whalley, John, 2009. "A General Equilibrium Model for Tax Policy Evaluation," National Bureau of Economic Research Books, University of Chicago Press, number 9780226036335, September.
    10. Fuss, Melvyn & McFadden, Daniel, 1978. "Production Economics: A Dual Approach to Theory and Applications (I): The Theory of Production," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, volume 1, number fuss1978.
    11. Charles L. Ballard & Don Fullerton & John B. Shoven & John Whalley, 1985. "Introduction to "A General Equilibrium Model for Tax Policy Evaluation"," NBER Chapters, in: A General Equilibrium Model for Tax Policy Evaluation, pages 1-5, National Bureau of Economic Research, Inc.
    12. Seeley, Ralph, 1985. "Price Elasticities From The Iiasa World Agriculture Model," Staff Reports 277684, United States Department of Agriculture, Economic Research Service.
    13. Diewert, W. E., 1973. "Functional forms for profit and transformation functions," Journal of Economic Theory, Elsevier, vol. 6(3), pages 284-316, June.
    14. Carman, Hoy F., 1981. "Income Tax Reform And California Orchard Development," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 6(2), pages 1-16, December.
    15. Hrubovcak, James & LeBlanc, Michael, 1985. "Tax Policy and Agricultural Investment," Technical Bulletins 157673, United States Department of Agriculture, Economic Research Service.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Robinson, Sherman & Kilkenny, Maureen & Hanson, Kenneth, 1990. "The USDA/ERS Computable General Equilibrium (CGE) Model of the United States," Staff Reports 278341, United States Department of Agriculture, Economic Research Service.
    2. Xin Zhao & Dominique Y van der Mensbrugghe & Roman M. Keeney & Wallace E. Tyner, 2021. "Improving the Way Land Use Change is Handled in Economic Models," World Scientific Book Chapters, in: Peter Dixon & Joseph Francois & Dominique van der Mensbrugghe (ed.), POLICY ANALYSIS AND MODELING OF THE GLOBAL ECONOMY A Festschrift Celebrating Thomas Hertel, chapter 15, pages 467-515, World Scientific Publishing Co. Pte. Ltd..
    3. Roxana Julia-Wise & Stephen C. Cooke & RDavid Holland, 2002. "A Computable General Equilibrium Analysis of a Property Tax Limitation Initiative in Idaho," Land Economics, University of Wisconsin Press, vol. 78(2), pages 207-227.
    4. Li, Liang & Taheripour, Farzad & Preckel, Paul V. & Tyner, Wallace E., 2012. "Improvement of GTAP Cropland Constant Elasticity of Transformation Nesting Structure," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124704, Agricultural and Applied Economics Association.
    5. Hertel, Thomas W. & Tyner, Wallace E. & Birur, Dileep K., 2008. "Biofuels for all? Understanding the Global Impacts of Multinational Mandates," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6526, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Briones, Roehlano M., 2016. "Embedding the AMPLE in a CGE Model to Analyze Intersectoral and Economy-Wide Policy Issues," Discussion Papers DP 2016-38, Philippine Institute for Development Studies.
    7. Hertel, Thomas W., 1991. "Applied General Equilibrium Analysis of Agricultural Policies," Staff Papers 200396, Purdue University, Department of Agricultural Economics.
    8. Jiménez Giraldo, Dora Elena & Saldarriaga-Isaza, Adrián & Cicowiez, Martin, 2019. "Distributional and economy-wide effects of post-conflict policy in Colombia," Conference papers 333124, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    9. Hertel, Thomas, 2013. "Global Applied General Equilibrium Analysis Using the Global Trade Analysis Project Framework," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 815-876, Elsevier.
    10. Grant J. Allan, 2015. "The Regional Economic Impacts of Biofuels: A Review of Multisectoral Modelling Techniques and Evaluation of Applications," Regional Studies, Taylor & Francis Journals, vol. 49(4), pages 615-643, April.
    11. Kai Ding & Filippo Rebessi, 2020. "Optimal Agricultural Policy: Small Gains?," Economic Inquiry, Western Economic Association International, vol. 58(4), pages 1907-1928, October.
    12. Kretschmer, Bettina & Peterson, Sonja, 2010. "Integrating bioenergy into computable general equilibrium models -- A survey," Energy Economics, Elsevier, vol. 32(3), pages 673-686, May.
    13. Noel D. Uri & Roy Boyd, 1997. "The Effects of Reducing the Motor Fuels Excise Tax on Agriculture in the United States," Energy & Environment, , vol. 8(1), pages 45-63, March.
    14. Beckman, Jayson & Gopinath, Munisamy & Tsigas, Marinos, 2017. "Production and Trade Impacts of Tax Reform," 2018 Allied Social Sciences Association (ASSA) Annual Meeting, January 5-7, 2018, Philadelphia, Pennsylvania 266295, Agricultural and Applied Economics Association.
    15. Swinton, Scott M. & Black, J. Roy, 2000. "Modeling Of Agricultural Systems," Staff Paper Series 11581, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    16. Ngeleza, Guyslain K. & Muhammad, Andrew, 2008. "Preferential Trade Agreements between the Monetary Community of Central Africa and the European Union," Conference papers 331732, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    17. Michael Leblanc & James Hrubovcak & Ron Durst, 1999. "Changing fiscal federalism in the United States: effects on agriculture and food consumption," Applied Economics, Taylor & Francis Journals, vol. 31(11), pages 1373-1382.
    18. Everett B. Peterson & Paul V. Preckel & Thomas W. Hertel & Anya M. McGuirk, 1992. "Impacts of growth stimulants in the domestic livestock sector," Agribusiness, John Wiley & Sons, Ltd., vol. 8(4), pages 287-307.
    19. Kilkenny, Maureen, 1991. "Computable General Equilibrium Modeling of Agricultural Policies: Documentation of the 30-Sector FPGE GAMS Model of the United States," Staff Reports 278539, United States Department of Agriculture, Economic Research Service.
    20. Jeong, Min-kook & Moon, Hanpil & Song, Woo-jin, 2017. "Impact Of Increased Imports Of Agricultural Products Due To Ftas On Domestic Price Decline," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 40(Special, ), December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aradhyula, Satheesh Venkata, 1989. "Policy structure, output supply and input demand for US crops," ISU General Staff Papers 198901010800009909, Iowa State University, Department of Economics.
    2. Renwick, Alan W. & Revoredo-Giha, Cesar & Reader, Mark A., 2005. "Uk Sugar Beet Farm Productivity Under Different Reform Scenarios: A Farm Level Analysis," Environmental Economy and Policy Research Discussion Papers 31936, University of Cambridge, Department of Land Economy.
    3. Barnett, William A. & Serletis, Apostolos, 2008. "Consumer preferences and demand systems," Journal of Econometrics, Elsevier, vol. 147(2), pages 210-224, December.
    4. Aguiar, Victor H. & Kashaev, Nail & Allen, Roy, 2023. "Prices, profits, proxies, and production," Journal of Econometrics, Elsevier, vol. 235(2), pages 666-693.
    5. Perekhozhuk, Oleksandr, 2007. "Marktstruktur und Preisbildung auf dem ukrainischen Markt für Rohmilch," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 41, number 92322, September.
    6. Yaryna Kolomiytseva, 2018. "Revisiting Transformation and Directional Technology Distance Functions," Papers 1812.10108, arXiv.org.
    7. Eswaramoorthy, K., 1991. "U.S. livestock production and factor demand: a multiproduct dynamic dual approach," ISU General Staff Papers 1991010108000010523, Iowa State University, Department of Economics.
    8. Serletis, Apostolos & Xu, Libo, 2020. "Functional monetary aggregates, monetary policy, and business cycles," Journal of Economic Dynamics and Control, Elsevier, vol. 121(C).
    9. Negri, Donald H. & Brooks, Douglas H., 1988. "The Determinants Of Irrigation Technology Choice," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270403, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Hertel, Thomas W., 1991. "Applied General Equilibrium Analysis of Agricultural Policies," Staff Papers 200396, Purdue University, Department of Agricultural Economics.
    11. Barnett, William A. & Serletis, Apostolos, 2008. "Measuring Consumer Preferences and Estimating Demand Systems," MPRA Paper 12318, University Library of Munich, Germany.
    12. Taehyoung Cho & Junghoon Kim & Paul Schreyer, 2015. "Measuring the evolution of Korea’s material living standards 1980–2012," Journal of Productivity Analysis, Springer, vol. 44(2), pages 157-173, October.
    13. Sauer, Johannes, 2008. "Quota Deregulation and Organic versus Conventional Milk – A Bayesian Distance Function Approach," 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK 36869, Agricultural Economics Society.
    14. Taining Wang & Jinjing Tian & Feng Yao, 2021. "Does high debt ratio influence Chinese firms’ performance? A semiparametric stochastic frontier approach with zero inefficiency," Empirical Economics, Springer, vol. 61(2), pages 587-636, August.
    15. Sauer, J.F., 2005. "“Efficiency Flooding”: Black-Box Frontiers and Policy Implications," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 2(1), pages 17-52.
    16. Levent Kutlu & Shasha Liu & Robin C. Sickles, 2022. "Cost, Revenue, and Profit Function Estimates," Springer Books, in: Subhash C. Ray & Robert G. Chambers & Subal C. Kumbhakar (ed.), Handbook of Production Economics, chapter 16, pages 641-679, Springer.
    17. Juan Aparicio & Fernando Borras & Jesus T. Pastor & Jose L. Zofio, 2016. "Loss Distance Functions and Profit Function: General Duality Results," International Series in Operations Research & Management Science, in: Juan Aparicio & C. A. Knox Lovell & Jesus T. Pastor (ed.), Advances in Efficiency and Productivity, chapter 0, pages 71-96, Springer.
    18. Dennis Epple & Brett Gordon & Holger Sieg, 2010. "A New Approach to Estimating the Production Function for Housing," American Economic Review, American Economic Association, vol. 100(3), pages 905-924, June.
    19. Johannes Sauer & Klaus Frohberg & Henrich Hockmann, 2006. "Stochastic efficiency measurement: The curse of theoretical consistency," Journal of Applied Economics, Universidad del CEMA, vol. 9, pages 139-166, May.
    20. Ulrich Kohli, 2001. "Sanyal and Jones on trade in middle products," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 10(1), pages 39-63.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea87:269963. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: http://www.aaea.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.