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The introduction of milk quotas in 1984 as a European Community policy instrument has generated considerable theoretical interest. It is possible that a new device might be introduced, namely a ‘siphon’ which is a ‘tax in kind’ levied on quota transfers arranged between farmers. This note examines the basic theory of taxation in kind. The suggestion is that the effects are not entirely on a par with those applying to indirect taxes in general. With some configurations of demand elasticity, in particular, the position of quota sellers might not be damaged or might improve. Quota purchasers are affected in the conventional way.

(1982). A century of land values 1781–1880. Oxford Agrarian Studies: Vol. 11, No. 1, pp. 93-107.