@article{Brown:15112, recid = {15112}, author = {Brown, A. Blake and Martin, Laura L.}, title = {PRICE VERSUS QUOTA REDUCTIONS: U.S. FLUE-CURED TOBACCO POLICY}, journal = {Journal of Agricultural and Applied Economics}, address = {1996-12}, number = {1379-2016-113385}, pages = {8}, year = {1996}, abstract = {Declining domestic cigarette consumption, increased global competition, and loss of import restrictions indicate decreased demand for U.S. flue-cured tobacco. The effects of 10% declines in domestic and export demand are evaluated under a policy of reducing quota to maintain price versus a policy of allowing price to fall to maintain quota. Changes in prices, quantities, revenues, and economic rents are simulated. Losses to nonfarming quota owners are minimized under a policy of price maintenance, while losses in revenues to tobacco-producing areas are minimized by a policy of quota maintenance. Aggregate losses to tobacco growers are greater under a policy of quota maintenance.}, url = {http://ageconsearch.umn.edu/record/15112}, doi = {https://doi.org/10.22004/ag.econ.15112}, }