@article{James:123668,
      recid = {123668},
      author = {James, Jennifer S.},
      title = {Quality Responses to Agricultural Policies},
      address = {2000-01-03},
      number = {411-2016-25758},
      pages = {37},
      month = {Jan},
      year = {2000},
      abstract = {Most policy analyses are conducted using a model of a  single market for a homogenous commodity. Usually, the  commodity of interest is not truley homogenous, but is  treated as such for the sake of simplicity. In doing so,  analysts are implicitly assuming that a single-market model  of a homogeneous product closely approximates true policy  effects. This paper explores the implications of this  assumption. The effects of the homogeneity assumption are  shown for the simple case of a product available in two  qualities, when market-distorting policies are introduced.  It is shown that, for plausible parameter values, ignoring  quality responses can have substantial impacts on the  estimated welafare effects of stereotypical commodity price  support policies. In addition, for a given transfer to  producers, a model that incorporates quality responses to  policies will imply different settings for policy  instruments than a model of homogeneous commodity, and in  some cases, different instruments. For some transfers, the  inclusion of quality responses will switch the transfer  efficiency ranking of policies.},
      url = {http://ageconsearch.umn.edu/record/123668},
      doi = {https://doi.org/10.22004/ag.econ.123668},
}