Abstract
A multiple-policy-instrument generalization of Gardner’s surplus transformation curve analysis is applied to an empirical model of the EC wheat sector to compare welfare effects of policy change proposals. A production quota/support price combination is estimated as the most efficient means of making relatively small transfers from EC agriculture to consumers/taxpayers. A coresponsibility levy/support price combination is estimated as the most efficient means of making larger transfers. The importance of accounting for income transfer size, distortions in related markets, and the structure of markets when comparing welfare effects of policy change proposals is demonstrated.
Original language | English (US) |
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Pages (from-to) | 59-67 |
Number of pages | 9 |
Journal | American Journal of Agricultural Economics |
Volume | 74 |
Issue number | 1 |
DOIs | |
State | Published - Feb 1992 |
Externally published | Yes |
Keywords
- Coresponsibility levy
- European Community
- Government transfers
- Production quota
- Support price
- Surplus transformation curve
ASJC Scopus subject areas
- Agricultural and Biological Sciences (miscellaneous)
- Economics and Econometrics