REGIONAL ADJUSTMENT COSTS: A FAILURE OF NATIONAL ANALYSIS
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The use of national aggregate measures for the purpose of analyzing the impacts of agricultural policies hides the impact of national policies on the distribution of benefits and costs between and within regions, size, and types of businesses. While economists can use national aggregate measures to indicate changes in overall efficiency due to policies, the tradeoff between efficiency and equity should be measured and the results provided to policymakers. These tradeoffs were not presented during the 1995-96 Farm Bill debate.