“…In setting the prices of agricultural goods, inputs, and services, the ratio of input to output prices faced by producers differed greatly among the countries. For example, in China and Vietnam before reform, authorities used administrative prices to impose a heavy tax on agriculture by requiring farmers to deliver their output at artificially low prices (Lardy 1983;Sicular 1988a;Green and Vokes 1998). In contrast, leaders in most of the CEE and the CIS nations supported agriculture with heavy subsidies, typically setting artificially low prices for inputs and relatively high prices for output (Edward Cook, William Liefert, and Robert Koopman 1991;Andrzej Kwiecinski and Natacha Pescatore 2000;Liefert et al 1996;USDA 1994;Thomas Tomich, Peter Kilby, and Bruce Johnston 1995).…”