| 초록 |
Recently, Lee(2006) analyzed empirically the degree of decoupling for direct payment program for Korean rice industry with a representative farm model. This paper considers how direct payments have impacts on farmers with different average costs since they can have a relatively large impacts on the low-profit farms according to Chau and Gorter(2005). The direct payment program for Korean rice industry causes the profit distribution to be truncated. Therefore, the expected utility maximization is adapted to simulate the degree of decoupling rather than mean-variance analysis used in Lee.
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