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Abstract

The world trade model used for this study suggests taht Japanese agricultural policies have substantially depressed world rice prices. The study also indicates that such policies have imposed considerable distrotions in Japan's domestic economy, costing consumers and taxpayers nearly $1.73 to provide a dollar of support to agricultural producers. The study concludes that while elimination of agricultural support could considerably lower Japanese agricultural incomes, such losses may not affect the living standards of most farmers because agriculture contributes less than 8 percent of total household incomes for nearly 70 percent of farmers.

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