@article{Devadoss:246251,
      recid = {246251},
      author = {Devadoss, Stephen and Gibson, Mark J. and Luckstead, Jeff},
      title = {The Impact of Agricultural Subsidies on the Corn Market  with Farm Heterogeneity and Endogenous Entry and Exit},
      journal = {Journal of Agricultural and Resource Economics},
      address = {2016-09},
      number = {1835-2016-149572},
      series = {Vol. 41},
      pages = {20},
      year = {2016},
      abstract = {We develop a model with farm-level heterogeneity in  productivity and endogenous entry and exit
decisions to  analyze the effect of price supports and direct payments on  the U.S. corn market.
The analytical results show that,  contrary to the existing literature, removal of direct  payments
augments productivity while removal of price  supports does not impact productivity, and direct
payments  can lead to larger production distortions than price  supports under certain conditions.
The simulation results  corroborate the theoretical findings in that if both  policies are equal in
magnitude, then direct payments  result in larger price, output, and welfare distortions  than price
supports.},
      url = {http://ageconsearch.umn.edu/record/246251},
      doi = {https://doi.org/10.22004/ag.econ.246251},
}