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Trade Gains And Welfare Costs Of Income Stabilization Programs For Hog Producers In Quebec

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  • Coffin, H. Garth
  • Henning, John C.

Abstract

The welfare costs of deficiency payments for an exported commodity may, under certain conditions, outweigh the gains from trade. The potential welfare impacts of stabilization programs in the hog sector in Quebec are estimated, based on a partial equilibrium framework, and elasticity estimates drawn from other sources. The results indicate that the loss in surplus in Quebec as a result of deficiency payments is very modest at approximately $8.5 million or 1.7% of the value of production. Meanwhile, the net gains from trade remain on the order of $14 million.

Suggested Citation

  • Coffin, H. Garth & Henning, John C., 1989. "Trade Gains And Welfare Costs Of Income Stabilization Programs For Hog Producers In Quebec," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 18(2), pages 1-8, October.
    • Handle: RePEc:ags:nejare:28864
    DOI: 10.22004/ag.econ.28864
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    References listed on IDEAS

    as
    1. Owen, C. J., 1984. "The Hog Industry in Quebec," Working Papers 243997, Agriculture and Agri-Food Canada.
    2. J. R. Coleman & Karl D. Meilke, 1988. "The Influence of Exchange Rates on Red Meat Trade between Canada and the United States," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 36(3), pages 401-424, November.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    Livestock Production/Industries;

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