@article{Myers:172959,
      recid = {172959},
      author = {Myers, Robert J.},
      title = {Intervention bias in agricultural policy},
      journal = {Agricultural Economics: The Journal of the International  Association of Agricultural Economists},
      address = {1992-10},
      number = {968-2016-75190},
      pages = {16},
      year = {1992},
      abstract = {This paper re-examines the motivation for government  intervention in agriculture to
support farm prices and  incomes. A model is outlined in which the government has  a
preference for higher farm incomes but fails to provide  farmers with the socially optimal
level of price support,  even when one accepts the government's income  redistribution goals
as a valid reflection of social  preference. It is shown that agricultural policy has  an
intervention bias: government price supports generally  are higher than would be socially
optimal. The source of  the intervention bias is a time inconsistency in optimal  agricultural
policy formation, caused by the government's  inability to precommit to a rule for setting
future price  support levels. Simulation results indicate that in some  circumstances the
intervention bias in agricultural policy  can be substantial.},
      url = {http://ageconsearch.umn.edu/record/172959},
      doi = {https://doi.org/10.22004/ag.econ.172959},
}