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Measuring the Marginal Welfare Impacts of Government Regulation: The Case of Supply Management

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  • G. C. Van Kooten
  • Keith F. Taylor

Abstract

The focus in this paper is on the income leakage or loss that occurs when income is transferred from consumers to producers in regulated industries. The marginal leakage measure that is developed only requires knowledge about the demand price, the supply price, and the point elasticity of demand; and it can be used to estimate the degree of monopoly power exercised by the regulated firms. In the empirical section, the Canadian supply-managed agricultural sectors are examined.

Suggested Citation

  • G. C. Van Kooten & Keith F. Taylor, 1989. "Measuring the Marginal Welfare Impacts of Government Regulation: The Case of Supply Management," Canadian Journal of Economics, Canadian Economics Association, vol. 22(4), pages 892-903, November.
    • Handle: RePEc:cje:issued:v:22:y:1989:i:4:p:892-903
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    Cited by:

    1. Andrew Schmitz, 2008. "Canadian Agricultural Programs and Policy in Transition," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(4), pages 371-391, December.
    2. Brennan A. McLachlan & G. Cornelis van Kooten, 2022. "Reforming Canada's dairy supply management scheme and the consequences for international trade," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 70(1), pages 21-39, March.
    3. Gervais Jean-Philippe & Rude James I, 2003. "Some Unintended Consequences of TRQ Liberalization," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 1(1), pages 1-18, May.
    4. van Kooten, Gerrit Cornelis, 2017. "The Welfare Economics of Dismantling Dairy Quota in a Confederation of States," Working Papers 256743, University of Victoria, Resource Economics and Policy.

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