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Import quotas, price ceilings, and pricing behavior in Taiwan's flour industry

  • Tay-Cheng Ma

    (Department of Finance, National Kaohsiung University of Applied Sciences, 415 Chien Kung Road, Kaohsiung 807, Taiwan)

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    With the use of data from Taiwan's flour market, this article studies the impacts of wheat import quotas and flour price ceilings on the market. The evidence indicates that flour prices were set above competitive equilibrium levels during most of the regulation period. The high prices and profit margins earned in the regulation period were due to nonbinding price ceilings as well as binding import quotas. © 2007 Wiley Periodicals, Inc. Agribusiness 23: 1-15, 2007.

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    File URL: http://hdl.handle.net/10.1002/agr.20107
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    Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

    Volume (Year): 23 (2007)
    Issue (Month): 1 ()
    Pages: 1-15

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    Handle: RePEc:wly:agribz:v:23:y:2007:i:1:p:1-15
    Contact details of provider: Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297

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    1. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-44, September.
    2. Maki, Atsushi & Nishiyama, Shigeru, 1996. "An analysis of under-reporting for micro-data sets: The misreporting or double-hurdle model," Economics Letters, Elsevier, vol. 52(3), pages 211-220, September.
    3. Tay-Cheng Ma, 2005. "Strategic investment and excess capacity: A study of the Taiwanese flour industry," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 153-170, May.
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