New Approaches in Agricultural Policy Research: Discussion

摘要: The extent to which economists' advice is useful, sought after, and followed a source of contention frustration among economists. implicit message from Hallam's Buccola's papers that welfare economics has great tool kit with small modification can be used for the analysis almost any agricultural policy issue. Just conveyed opposite perception. Economists' ignored as irrelevant. He presents variety suggestions improvement change, but overall he conveys pessimistic mood. We do not share Just's pessimism. perceive gradual in role importance economists natural resource areas. Important U.S. government agencies, e.g., EPA, USDA, BLM, Army Corps Engineers, have increasingly adopted economic principles, decision rules, models incorporated them into their analysis. Economists are being included forums positions power they previously been excluded. Economic consulting firms supplying analyses policies flourishing. appear broken hold engineers, lawyers, agronomists intellectual input framework making. Obviously, progress slow, members other disciplines will resist encroachment, influence increasing. frustrations pessimism by talk nonetheless positive. Such self-criticism driving force making more useful palatable thus influential. When elegant results early theory were ignored, forced ask what had needs clients were, how might served better. desire heard influential (inherent) inability achieve complete success main forces an "induced innovation" process propels evolution subject. With this mind, we distinguish four phases postwar economics. First came efficiency era, when Paretian criteria compensation principles developed refined. These led applied tools aimed obtain efficient outcomes. lack popular appeal efficiency-intensive equity stage, procedures improve distribution considered. basic premise behind area research was potential separating considerations, at least far production decisions concerned. Second-best last obtained firm theoretical base theorems Diamond Mirrlees (1971). This challenged succeeding information age. In developments associated new industrial theories under uncertainty illustrate problems enforcement, ignorance, imperfections shatter some long-held claims economics, it suggested these informational considerations play paramount design. fourth phase, appears advocating, public choice critique social welfare-based theory. view, crucial weakness second-best eco-