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Abstract

Estimates of the change in 1970 net farm income resulting from free trade in grains and livestock are derived for ten production regions of the United States. Grains and losses are distributed by six economic classes of farm. Two inequality indices are used to assess the impact on the distribution of income. Although free trade leads to greater inter-regional inequality, intra-regional inequality declines. The net effect is a decline in total inequality. The qualitative relevance of these results under current conditions is supported by their robustness to change in assumed income gains.

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