The macroeconomic and food security implications of price interventions in the Philippine rice market
The Philippine government has a number of policy interventions in the domestic rice market aimed at promoting national food security. This paper examines the economy-wide and food security implications of three of the main policies: a ceiling on prices paid by rice consumers; a floor on prices received by paddy producers; and a subsidy on prices paid for seeds by paddy farmers. These programmes have been subject to domestic criticism on allocative efficiency and distributional grounds. We examine the effects of removing the programmes using an economy-wide model with detailed treatment of agricultural activity, land use, and food security measures. We find that the programmes make a small contribution to food security, for a modest budgetary outlay. The allocative efficiency gains available from ending the programmes are small, and may be outweighed by the potential for adverse short-run macroeconomic consequences.
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.
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.
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.:
- Bandara, Jayatilleke S. & Jayasuriya, Sisira, 2007. "Distortions to Agricultural Incentives in Sri Lanka," Agricultural Distortions Working Paper 48480, World Bank.
- W. Jill Harrison & K.R. Pearson, 1994.
"Computing Solutions for Large General Equilibrium Models Using GEMPACK,"
Centre of Policy Studies/IMPACT Centre Working Papers
ip-64, Victoria University, Centre of Policy Studies/IMPACT Centre.
- Harrison, W Jill & Pearson, K R, 1996. "Computing Solutions for Large General Equilibrium Models Using GEMPACK," Computational Economics, Springer;Society for Computational Economics, vol. 9(2), pages 83-127, May.
- Arndt, Channing & Tarp, Finn, 2001. "Who gets the goods? A general equilibrium perspective on food aid in Mozambique," Food Policy, Elsevier, vol. 26(2), pages 107-119, April.
- Paul Dorosh & Abdul Salam, 2006.
"Wheat Markets and Price Stabilisation in Pakistan : An Analysis of Policy Options,"
Microeconomics Working Papers
22188, East Asian Bureau of Economic Research.
- Paul Dorosh & Abdul Salam, 2008. "Wheat Markets and Price Stabilisation in Pakistan: An Analysis of Policy Options," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 47(1), pages 71-87.
- Dorosh, Paul & Salam, Abdul, 2006. "Wheat Markets and Price Stabilisation in Pakistan: An Analysis of Policy Options," MPRA Paper 2244, University Library of Munich, Germany.
- Paul Dorosh & Abdul Salam, 2006. "Wheat Markets and Price Stabilisation in Pakistan: An Analysis of Policy Options," PIDE-Working Papers 2006:5, Pakistan Institute of Development Economics.
- Ayele Gelan, 2006. "Cash or Food Aid? A General Equilibrium Analysis for Ethiopia," Development Policy Review, Overseas Development Institute, vol. 24(5), pages 601-624, 09.
- Christian Romer Lovendal, 2007. "Understanding the Dynamics of Food Insecurity and Vulnerability in Orissa, India," Working Papers 07-28, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
- James A. Giesecke & Nhi Hoang Tran & Erwin L. Corong & Steven Jaffee, 2013. "Rice Land Designation Policy in Vietnam and the Implications of Policy Reform for Food Security and Economic Welfare," Journal of Development Studies, Taylor & Francis Journals, vol. 49(9), pages 1202-1218, September.
- Paul Dorosh, 2008. "Food Price Stabilisation And Food Security: International Experience," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 44(1), pages 93-114.
- Dixon, Peter B. & Parmenter, B. R. & Powell, Alan A., 1984. "The role of miniatures in computable general equilibrium modelling : Experience from ORANI," Economic Modelling, Elsevier, vol. 1(4), pages 421-428, October.
- Hanoch, Giora, 1971. "CRESH Production Functions," Econometrica, Econometric Society, vol. 39(5), pages 695-712, September.
- Joachim von Braun, 2008.
"Rising Food Prices: What Should Be Done?,"
The Agricultural Economics Society, vol. 7(SpecialIs), pages 30-35, 08.
- Peter B. Dixon & Maureen T. Rimmer, 1999. "Changes in Indirect Taxes in Australia: A Dynamic General Equilibrium Analysis," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 32(4), pages 327-348.
- von Braun, Joachim, 2008. "Rising food prices: What should be done? [In Chinese]," Policy briefs 1 CH, International Food Policy Research Institute (IFPRI).
- Rae, A. & Josling, T., 2003. "Processed food trade and developing countries: protection and trade liberalization," Food Policy, Elsevier, vol. 28(2), pages 147-166, April.
- Cororaton, Caesar B. & Cockburn, John, 2007. "Trade reform and poverty--Lessons from the Philippines: A CGE-microsimulation analysis," Journal of Policy Modeling, Elsevier, vol. 29(1), pages 141-163.
- Lips, Markus, 2005. "Sufficient nourishment worldwide via transfer payments," Food Policy, Elsevier, vol. 30(1), pages 81-96, February.
- Munro, Lauchlan T., 2003. "Zimbabwe's Agricultural Recovery Programme in the 1990s: an evaluation using household survey data," Food Policy, Elsevier, vol. 28(5-6), pages 437-458.
- Tanaka, Tetsuji & Hosoe, Nobuhiro, 2011. "Does agricultural trade liberalization increase risks of supply-side uncertainty?: Effects of productivity shocks and export restrictions on welfare and food supply in Japan," Food Policy, Elsevier, vol. 36(3), pages 368-377, June.
- Aying Liu & Shujie Yao & Robert Greener, 1996. "A Cge Model Of Agricultural Policy Reform In The Philippines," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1-4), pages 18-27.
- Cororaton, Caesar B. & Corong, Erwin, 2009. "Philippine agricultural and food policies: Implications for poverty and income distribution," Research reports 161, International Food Policy Research Institute (IFPRI).
- Peter B. Dixon & Maureen T. Rimmer, 2006. "The Displacement Effect of Labour-Market Programs: MONASH Analysis," The Economic Record, The Economic Society of Australia, vol. 82(s1), pages 26-40, 09.
- World Bank, 2005. "Managing Food Price Risks and Instability in an Environment of Market Liberalization," World Bank Other Operational Studies 8264, The World Bank.
- Joaquim Bento de Souza Ferreira Filho & Mark Horridge, 2011.
"Ethanol expansion and indirect land use change in Brazil,"
0114, Universidade Federal do Paraná, Department of Economics.
- Joaquim Bento Ferreira-Filho & Mark Horridge, 2011. "Ethanol Expansion and Indirect Land Use Change in Brazil," Centre of Policy Studies/IMPACT Centre Working Papers g-218, Victoria University, Centre of Policy Studies/IMPACT Centre.
- Arsenio M. Balisacan, 1994. "Demand for Food in the Philippines: Responses to Price and Income Changes," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 31(2), pages 137-163, December.
- Ecker, Olivier & Breisinger, Clemens & McCool, Christen & Diao, Xinshen & Funes, Jose & You, Liangzhi & Yu, Bingxin, 2010. "Assessing food security in Yemen," IFPRI discussion papers 982, International Food Policy Research Institute (IFPRI).
When requesting a correction, please mention this item's handle: RePEc:eee:ecmode:v:37:y:2014:i:c:p:350-361. 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: (Shamier, Wendy)
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.