Agricultural households adjust to policy changes through market mechanisms by altering: their production mix, labor input, and on- and off-farm investments. Because of the significant heterogeneity among farms in the US agricultural sector, various types of farm households respond to the same...

By changing marginal prices and therefore production incentives, removal of government payments will result in a re-allocation of factors of production as farm households pursue alternative economic opportunities. At the economy-wide level these impacts are small, but closer inspection reveals...

This paper examines the structural adjustments induced as China moved from a planned economy that subsidized capital-intensive industry at the expense of agriculture to a nationally integrated market economy more fitting with China's underlying resource endowments. We argue that there were few...