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Testing For Efficiency: A Policy Analysis With Probability Distributions

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

Abstract

The study evaluates the efficiency of government intervention using a vertical structured model including imperfectly competitive agricultural input markets, the bread grain market, and the imperfectly competitive food industry. To test for policy efficiency the actually observed bread grain policy is compared to a hypothetical efficient policy. To account for the sensitivity of the results in regard to the model parameter values computer-intensive simulation procedures and surface response functions are utilized.

Suggested Citation

  • 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.
  • Handle: RePEc:ags:iaae03:25891
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    File URL: http://ageconsearch.umn.edu/record/25891/files/cp03sa05.pdf
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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. 0(Issue 1), pages 1-24.
    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. 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.
    2. 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.

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    Keywords

    Productivity Analysis;

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