The effects of farm subsidies on farm exports in the United States Tong, Lan Anh, Pham, Cong S and Ulubaşoğlu, Mehmet A 2019, The effects of farm subsidies on farm exports in the United States, American journal of agricultural economics, vol. 101, no. 4, pp. 1277-1304, doi: 10.1093/ajae/aay112. Attached Files Name Description MIMEType Size Downloads Title The effects of farm subsidies on farm exports in the United States Author(s) Tong, Lan Anh Pham, Cong S orcid.org/0000-0002-4970-2447 Ulubaşoğlu, Mehmet A orcid.org/0000-0003-3055-5755 Journal name American journal of agricultural economics Volume number 101 Issue number 4 Start page 1277 End page 1304 Total pages 28 Publisher Oxford University Press Place of publication Oxford, Eng. Publication date 2019-07 ISSN 0002-9092 1467-8276 Keyword(s) Farm subsidies U.S. farm bills Gravity equation U.S. farm exports Summary We estimate the elasticity of U.S. farm exports to U.S. farm subsidies using a gravity model of state-level farm exports to 100 major trading destinations for the period 1999 to 2011. Our identification strategy exploits the within-state variation that is free of endogeneity bias in the levels and trends of farm subsidies and farm exports. We find that a 1% decrease in farm subsidies would reduce U.S. farm exports by 0.40% per annum. This equivalently means that the complete abolishment of the farm subsidy program would reduce U.S. farm exports by approximately $15.3 billion per year. Importantly, we document robust evidence that amber box subsidy programs such as counter-cyclical payments and marketing loan gains have the strongest effect on farm exports, while green box subsidy payments, such as direct payments have negligible effects. Finally, subsidy payments affect exports only in agricultural commodities, not in livestock. Our subsidy elasticity estimates are statistically significant, stable, and economically meaningful, and are vitally needed by U.S. and global policymakers in the face of critical domestic and international developments. Language eng DOI 10.1093/ajae/aay112 Indigenous content off Field of Research 1402 Applied Economics HERDC Research category C1 Refereed article in a scholarly journal ERA Research output type C Journal article Copyright notice ©2019, The Author(s) Persistent URL http://hdl.handle.net/10536/DRO/DU:30129184 Document type: Journal Article Collections: Faculty of Business and Law Department of Economics Related Links Link Description Connect to published version Go to link with your DU access privileges   Connect to Elements publication management system Go to link with your DU access privileges     Unless expressly stated otherwise, the copyright for items in DRO is owned by the author, with all rights reserved. Versions Version Filter Type Fri, 23 Aug 2019, 10:59:26 EST Sat, 24 Aug 2019, 05:00:37 EST Sat, 24 Aug 2019, 06:04:48 EST Tue, 27 Aug 2019, 16:08:30 EST Tue, 27 Aug 2019, 16:10:12 EST Sat, 09 Nov 2019, 01:32:11 EST Sat, 23 Nov 2019, 01:30:20 EST Filtered Full Citation counts:   Cited 6 times in TR Web of Science Cited 5 times in Scopus Search Google Scholar Access Statistics: 429 Abstract Views, 2 File Downloads  -  Detailed Statistics Created: Fri, 23 Aug 2019, 10:59:26 EST