The Welfare Evaluation of the Spanish Price Policy: An Integrated Approach
The use of the economic surplus measures has been widespread in the welfare evaluation of trade distortions in agricultural markets. However, the criterion based on the sum of surplus areas can be ambiguous since it usually involves the implicit acceptance of a restrictive class of value judgments. This article approaches the evaluation of the Spanish agricultural pricing policy by means of A. Atkinson's (1970) welfare function, that makes clear the trade-off between efficiency and equity, and explicitly includes the policy maker's inequality aversion. Optimum levels of protection are estimated at various inequality-aversion levels. Copyright 1987 by Oxford University Press.
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Volume (Year): 14 (1987)
Issue (Month): 1 ()
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