IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Judging agricultural policies: a survey

  • Bullock, David S.
  • Salhofer, Klaus

This survey provides a structured picture of 40 years of literature which uses welfare economic tools to judge agricultural policy. Challenges and developments of normative agricultural policy analysis are discussed in an easily accessible graphical framework. It is shown how the literature has gone from examining a very small discrete set of simple policies to a much broader (often continuous) set of policies that combine policy instruments simultaneously. The importance of the Pareto criterion, used to explore the limits of how government can affect welfare, is revealed. Moreover, given the importance of the objective of income redistribution in agricultural policy, agricultural economists have often departed from the purely efficiency-oriented tradition in economics. It is shown that they have tried to incorporate equity considerations by either adding these criteria as constraints to the social welfare function, or directly incorporating these criteria in the functional form of the social welfare function.

(This abstract was borrowed from another version of this item.)

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.sciencedirect.com/science/article/pii/S0169-5150(03)00002-1
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Blackwell in its journal Agricultural Economics.

Volume (Year): 28 (2003)
Issue (Month): 3 (May)
Pages: 225-243

as
in new window

Handle: RePEc:eee:agecon:v:28:y:2003:i:3:p:225-243
Contact details of provider: Web page: http://www.blackwell-synergy.com/loi/agec

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Bullock, David S, 1995. "Are Government Transfers Efficient? An Alternative Test of the Efficient Redistribution Hypothesis," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1236-74, December.
  2. Alston, Julian M. & Smith, Vincent H. & Acquaye, Albert K.A. & Hosseini, Safdar, 1999. "Least-cost cheap-food policies: some implications of international food aid," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 20(3), May.
  3. repec:inr:wpaper:154181 is not listed on IDEAS
  4. Moschini, GianCarlo & Sckokai, Paolo, 1994. "Efficiency of Decoupled Farm Programs Under Distortionary Taxatioin," Staff General Research Papers 12713, Iowa State University, Department of Economics.
  5. Krinsky, Itzhak & Robb, A Leslie, 1991. "Three Methods for Calculating the Statistical Properties of Elasticities: A Comparison," Empirical Economics, Springer, vol. 16(2), pages 199-209.
  6. W. L. Adamowicz & T. Graham-Tomasi & J. J. Fletcher, 1989. "Inequality Constrained Estimation of Consumer Surplus," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 37(3), pages 407-420, November.
  7. Gardner, Bruce L., 1988. "Export Policy, Deficiency Payments, and a Consumption Tax," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 1.
  8. Giannakas, Konstantinos & Fulton, Murray, 2000. "The economics of coupled farm subsidies under costly and imperfect enforcement," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 22(1), January.
  9. Gorter, H. de & Nielson, D. & Rausser, Gordon C., 1992. "Productive and Predatory Public Policies," Staff General Research Papers 732, Iowa State University, Department of Economics.
  10. Philippidis, G. & Hubbard, L. J., 2001. "The economic cost of the CAP revisited," Agricultural Economics, Blackwell, vol. 25(2-3), pages 375-385, September.
  11. Zhao, Xueyan & Griffiths, William E. & Griffith, Garry R. & Mullen, John D., 2000. "Probability distributions for economic surplus changes: the case of technical change in the Australian wool industry," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(1), March.
  12. Brent Hueth, 2000. "The Goals of U.S. Agricultural Policy: A Mechanism Design Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 14-24.
  13. David S. Bullock & Philip Garcia, 1999. "Testing the Efficient Redistribution Hypothesis: An Application to Japanese Beef Policy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(2), pages 408-423.
  14. Mingxia Zhang, 1997. "The Effects of Imperfect Competition on the Size and Distribution of Research Benefits," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1252-1265.
  15. Gisser, Micha, 1993. "Price Support, Acreage Controls, and Efficient Redistribution," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 584-611, August.
  16. Rausser, Gordon C., 1982. "Political economic markets: PERTS and PESTS in food and agriculture," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt6ct5s49t, Department of Agricultural & Resource Economics, UC Berkeley.
  17. Konstantinos Giannakas & Murray Fulton, 2000. "Efficient Redistribution Using Quotas and Subsidies in the Presence of Misrepresentation and Cheating," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 347-359.
  18. Alston, Julian M. & James, Jennifer S., 2002. "The incidence of agricultural policy," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 33, pages 1689-1749 Elsevier.
  19. Rausser, Gordon C & de Gorter, Harry, 1991. "The Political Economy of Commodity and Public Good Policies in European Agriculture: Implications for Policy Reform," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 18(3-4), pages 485-504.
  20. Krinsky, Itzhak & Robb, A Leslie, 1990. "On Approximating the Statistical Properties of Elasticities: A Correction," The Review of Economics and Statistics, MIT Press, vol. 72(1), pages 189-90, February.
  21. K.J. Thomson & D.R. Harvey, 1981. "The efficiency of the Common Agricultural Policy," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 8(1), pages 57-83.
  22. George C. Davis & Maria Cristina Espinoza, 1998. "A Unified Approach to Sensitivity Analysis in Equilibrium Displacement Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(4), pages 868-879.
  23. Nicholas E. Piggott, 2000. "The Incidence of the Costs and Benefits of Generic Advertising," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(3), pages 665-671.
  24. Xueyan Zhao & Kym Anderson & Glyn Wittwer, 2002. "Who Gains from Australian Generic Wine R&D and Promotion?," Centre for International Economic Studies Working Papers 2002-04, University of Adelaide, Centre for International Economic Studies.
  25. Jeong, Kyeong-Soo & Garcia, Philip & Bullock, David S., 2003. "A statistical method of multi-market welfare analysis applied to Japanese beef policy liberalization," Journal of Policy Modeling, Elsevier, vol. 25(3), pages 237-256, April.
  26. Daniel T. Slesnick, 1998. "Empirical Approaches to the Measurement of Welfare," Journal of Economic Literature, American Economic Association, vol. 36(4), pages 2108-2165, December.
  27. Yaron, D. & Ratner, A., 1990. "Regional Cooperation in the Use of Irrigation Water: Efficiency and Income Distribution," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 4(1), April.
  28. John D. Mullen & Julian M. Alston & Michael K. Wohlgenant, 1989. "The Impact Of Farm And Processing Research On The Australian Wool Industry," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 33(1), pages 32-47, 04.
  29. David S. Bullock & Klaus Salhofer & Jukka Kola, 1999. "The Normative Analysis of Agricultural Policy: A General Framework and Review," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 512-535.
  30. Nancy E. Bockstael & Ivar E. Strand, Jr., 1987. "The Effect of Common Sources of Regression Error on Benefit Estimates," Land Economics, University of Wisconsin Press, vol. 63(1), pages 11-20.
  31. Kling, Catherine L. & Sexton, Richard, 1990. "Bootstrapping in Applied Welfare Analysis," Staff General Research Papers 1595, Iowa State University, Department of Economics.
  32. Swinnen, Johan F.M. & de Gorter, Harry, 1995. "Endogenous Commodity Policies and the Social Benefits from Public Research Expenditures," Working Papers 128002, Cornell University, Department of Applied Economics and Management.
  33. McKenzie,George W., 1983. "Measuring Economic Welfare," Cambridge Books, Cambridge University Press, number 9780521248624, November.
  34. Bullock, David S. & Salhofer, K., 1998. "Measuring the social costs of suboptimal combinations of policy instruments: A general framework and an example," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 18(3), May.
  35. Murphy, John A. & Furtan, W. Hartley & Schmitz, Andrew, 1993. "The gains from agricultural research under distorted trade," Journal of Public Economics, Elsevier, vol. 51(2), pages 161-172, June.
  36. Just, Richard E & Schmitz, Andrew & Zilberman, David, 1979. "Price Controls and Optimal Export Policies under Alternative Market Structures," American Economic Review, American Economic Association, vol. 69(4), pages 706-14, September.
  37. Weyerbrock, Silvia, 1998. "Reform of the European Union's Common Agricultural Policy: How to reach GATT-compatibility?," European Economic Review, Elsevier, vol. 42(2), pages 375-411, February.
  38. Salhofer, Klaus & Schmid, Erwin & Streicher, Gerhard & Schneider, Friedrich, 2003. "Testing For Efficiency: A Policy Analysis With Probability Distributions," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25891, International Association of Agricultural Economists.
  39. Peter G. Warr, 2001. "Welfare Effects of an Export Tax: Thailand's Rice Premium," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 903-920.
  40. Guyomard, Herve & Mahe, Louis-Pascal, 1994. "Is a Production Quota Pareto Superior to Price Support Only?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 21(1), pages 31-36.
  41. William Griffiths & Xueyan Zhao, 2000. "A Unified Approach to Sensitivity Analysis in Equilibrium Displacement Models: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 236-240.
  42. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
  43. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-19, November.
  44. T. D. Wallace, 1962. "Measures of Social Costs of Agricultural Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 44(2), pages 580-594.
  45. Lichtenberg, Erik & Zilberman, David, 1986. "The Welfare Economics of Price Supports in U.S. Agriculture," American Economic Review, American Economic Association, vol. 76(5), pages 1135-41, December.
  46. van Tongeren, Frank & van Meijl, Hans & Surry, Yves, 2001. "Global models applied to agricultural and trade policies: a review and assessment," Agricultural Economics, Blackwell, vol. 26(2), pages 149-172, November.
  47. Wright, Brian D, 1979. "The Effects of Ideal Production Stabilization: A Welfare Analysis Under Rational Behavior," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 1011-33, October.
  48. Sen, Amartya K, 1979. "Personal Utilities and Public Judgements: Or What's Wrong with Welfare Economics?," Economic Journal, Royal Economic Society, vol. 89(355), pages 537-58, September.
  49. Gardner, Bruce L., 1992. "Price Supports and Optimal Spending on Agricultural Research," Working Papers 197793, University of Maryland, Department of Agricultural and Resource Economics.
  50. Hertel, Thomas W & Tsigas, Marinos E, 1991. "General Equilibrium Analysis of Supply Control in U.S. Agriculture," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 18(2), pages 167-91.
  51. Carlos Romero, 2001. "A Note on Distributive Equity and Social Efficiency," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(2), pages 110-112.
  52. Runar Brännlund & Bengt Kriström, 1996. "Welfare Measurement in Single and Multimarket Models: Theory and Application," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 157-165.
  53. Beach, E. Douglas & Fernandez-Cornejo, Jorge, 1994. "Setting Research Priorities in the Public Sector: A Suggested Framework for the AARC Center," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 2.
  54. Sexton, Richard J., 1994. "A Survey of Noncooperative Game Theory with Reference to Agricultural Markets: Part 2. Potential Applications in Agriculture," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 62(02), August.
  55. Kola, Jukka, 1993. "Efficiency of Supply Control Programmes in Income Redistribution," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 20(2), pages 183-98.
  56. Bullock, David S. & Salhofer, Klaus, 1998. "A Note On The Efficiency Of Income Redistribution With Simple And Combined Policies," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 27(2), October.
  57. Paarlberg, Philip L., 1984. "When Are Export Subsidies Rational?," Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 1.
  58. Carol Horton Tremblay & Victor J. Tremblay, 1995. "The Impact Of Cigarette Advertising On Consumer Surplus, Profit, And Social Welfare," Contemporary Economic Policy, Western Economic Association International, vol. 13(1), pages 113-124, 01.
  59. Cornes,Richard, 1992. "Duality and Modern Economics," Cambridge Books, Cambridge University Press, number 9780521336017, November.
  60. Kling, Catherine L. & Dorfman, Jeffrey & Sexton, Richard, 1990. "Confidence Intervals for Elasticities and Flexibilities: Re-Evaluating the Ratios of Normals Case," Staff General Research Papers 1582, Iowa State University, Department of Economics.
  61. Silberberg, Eugene, 1972. "Duality and the Many Consumer's Surpluses," American Economic Review, American Economic Association, vol. 62(5), pages 942-52, December.
  62. Gallagher, Paul W., 1988. "The Grain Sector of the European Community: Policy Formation, Price Determination and Implications for Trade," Staff General Research Papers 10778, Iowa State University, Department of Economics.
  63. Zhao, Xueyan & Griffith, Garry R. & Mullen, John D., 2000. "Returns to New Technologies in the Australian Beef Industry: On-farm Research versus Off-farm Research," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123749, Australian Agricultural and Resource Economics Society.
  64. Sexton, Richard J., 1994. "A Survey of Noncooperative Game Theory with Reference to Agricultural Markets: Part 1. Theoretical Concepts," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 62(01), April.
  65. Zvi Griliches, 1958. "Research Costs and Social Returns: Hybrid Corn and Related Innovations," Journal of Political Economy, University of Chicago Press, vol. 66, pages 419.
  66. A. T. Blake & A. J. Rayner & G. V. Reed, 1999. "A Computable General Equilibrium Analysis of Agricultural Liberalisation: The Uruguay Round and Common Agricultural Policy Reform," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 400-424.
  67. Walter N. Thurman, 1993. "The Welfare Significance and Nonsignificance of General Equilibrium Demand and Supply Curves," Public Finance Review, , vol. 21(4), pages 449-469, October.
  68. Chipman, John S & Moore, James C, 1980. "Compensating Variation, Consumer's Surplus, and Welfare," American Economic Review, American Economic Association, vol. 70(5), pages 933-49, December.
  69. Robert Innes, 1990. "Government Target Price Intervention in Economies with Incomplete Markets," The Quarterly Journal of Economics, Oxford University Press, vol. 105(4), pages 1035-1052.
  70. Giannakas, Konstantinos & Fulton, Murray, 2000. "The economics of coupled farm subsidies under costly and imperfect enforcement," Agricultural Economics, Blackwell, vol. 22(1), pages 75-90, January.
  71. Yaron, D. & Ratner, A., 1990. "Regional cooperation in the use of irrigation water: Efficiency and income distribution," Agricultural Economics, Blackwell, vol. 4(1), pages 45-58, April.
  72. George C. Davis & M. Cristina Espinoza, 2000. "A Unified Approach to Sensitivity Analysis in Equilibrium Displacement Models: Reply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 241-243.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:eee:agecon:v:28:y:2003:i:3:p:225-243. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.