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Testing for Efficiency: A Policy Analysis with Probability Distributions

Author

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  • Salhofer, Klaus
  • Schmid, Erwin
  • Streicher, Gerhard
  • Schneider, Friedrich

Abstract

The study evaluates the efficiency of government intervention using a vertically-structured model including imperfectly competitive agricultural input markets, a bread grain market, and an imperfectly competitive food industry. An actually observed bread grain policy is compared to a hypothetical efficient policy. Computer-intensive simulation procedures and surface response functions are utilized to account for the sensitivity of model results with respect to 10,000 normal distributed parameter sets.

Suggested Citation

  • Salhofer, Klaus & Schmid, Erwin & Streicher, Gerhard & Schneider, Friedrich, 2005. "Testing for Efficiency: A Policy Analysis with Probability Distributions," 89th Seminar, February 2-5, 2005, Parma, Italy 239277, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae89:239277
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    File URL: http://purl.umn.edu/239277
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    References listed on IDEAS

    as
    1. 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.
    2. Horan, Richard D. & Claassen, Roger & Howe, Lance, 2001. "The Welfare Sensitivity Of Agri-Environmental Instruments," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(02), December.
    3. Salhofer, Klaus & Hofreither, Markus F & Sinabell, Franz, 2000. "Promotion of the Agricultural Sector and Political Power in Austria," Public Choice, Springer, vol. 102(3-4), pages 229-246, March.
    4. Salhofer, Klaus & Schmid, Erwin, 2004. "Distributive leakages of agricultural support: some empirical evidence," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 30(1), January.
    5. Gardner, Bruce L, 1992. "Changing Economic Perspectives on the Farm Problem," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 62-101, March.
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    Cited by:

    1. Salhofer, Klaus & Schmid, Erwin, 2004. "Distributive leakages of agricultural support: some empirical evidence," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 30(1), January.
    2. Bullock, David S. & Salhofer, Klaus, 2003. "Judging agricultural policies: a survey," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 28(3), May.

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