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Unformatted text preview: -Support the price farmers receive for their products above equilibrium and then subsidize sale of the surplus on the domestic market.-Investment in productivity-enhancing, cost-reducing agricultural research. Distributional Impact of Investments in Agricultural Research-Investments in agricultural research benefit consumers in general by reducing the price of food and in turn their real cost of living.-This has a disproportionately positive (progressive) impact on low income consumers. Because they spend the largest fraction of their incomes on food, they enjoy the largest percentage reduction in their cost of living.-This can also benefit other sectors of the economy because consumers have more of their income available to spend of things other than food....
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This note was uploaded on 03/25/2009 for the course ACE 451 taught by Professor Unnevehr during the Spring '08 term at University of Illinois, Urbana Champaign.
- Spring '08