The Effects of Domestic Rice Market Interventions Outside Business-As-Usual Conditions For Imported Rice Prices
The Philippine government intervenes in the domestic rice market through the imposition of import tariffs and the provision of producer and consumer subsidies. While policy makers are aware that these programs come with allocative efficiency costs, they justify the programs on the grounds that they insulate the domestic economy from unexpected price spikes in the international rice market. An interesting matter for policy evaluation is to quantify the insulation benefit that the programs provide in circumstances of sudden severe import price spikes. To examine this question, we undertake a dynamic CGE simulation in which the Philippines is subject to an external rice price shock. We find that the insulation benefit of the support programs under a 2008-like event is worth approximately 0.10 per cent of real consumption. However the cost of insuring against these price spikes is significant. We estimate the annual cost of the rice market interventions at approximately 0.40 per cent of real consumption.
|Date of creation:||Jun 2014|
|Publication status:||Published in Mariano, M., J.A. Giesecke and N.H. Tran. (2015), 'The effects of domestic rice market interventions outside business-as-usual conditions for imported rice prices', Applied Economics, Vol. 47, No. 8, February 2015, pp. 809-832.|
|Contact details of provider:|| Postal: PO Box 14428, Melbourne, Victoria, 8001|
Phone: 03 9919 1877
Web page: http://www.copsmodels.com/about.htm
More information through EDIRC
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.:
- Derek Headey & Sangeetha Malaiyandi & Shenggen Fan, 2010.
"Navigating the perfect storm: reflections on the food, energy, and financial crises,"
International Association of Agricultural Economists, vol. 41(s1), pages 217-228, November.
- Headey, Derek & Malaiyandi, Sangeetha & Fan, Shenggen, 2009. "Navigating the perfect storm: Reflections on the food, energy, and financial crises," IFPRI discussion papers 889, International Food Policy Research Institute (IFPRI).
- Headey, Derek D. & Malaiyandi, Sangeetha & Fan, Shenggen, 2009. "Navigating the Perfect Storm: Reflections on the Food, Energy, and Financial Crises," 2009 Conference, August 16-22, 2009, Beijing, China 53212, International Association of Agricultural Economists.
- 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.
- 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.
- Giesecke, James A. & Nhi, Tran Hoang, 2010. "Modelling value-added tax in the presence of multi-production and differentiated exemptions," Journal of Asian Economics, Elsevier, vol. 21(2), pages 156-173, April.
- James Giesecke & Nhi Hoang Tran, 2009. "Modelling Value-Added Tax in the Presence of Multiproduction and Differentiated Exemptions," Centre of Policy Studies/IMPACT Centre Working Papers g-182, Victoria University, Centre of Policy Studies/IMPACT Centre.
- Giesecke, James A. & Tran, Nhi Hoang, 2009. "Modelling value-added tax in the presence of multiproduction and differentiated exemptions," MPRA Paper 13914, University Library of Munich, Germany.
- Balisacan, Arsenio M. & Ravago, Majah-Leah V., 2003. "THE rice problem in the Philippines: trends, constraints, and policy imperatives," MPRA Paper 24865, University Library of Munich, Germany.
- Will Martin & Kym Anderson, 2012. "Export Restrictions and Price Insulation During Commodity Price Booms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(2), pages 422-427.
- Anderson, Kym & Martin, Will, 2011. "Export Restrictions and Price Insulation During Commodity Price Booms," CEPR Discussion Papers 8494, C.E.P.R. Discussion Papers.
- Martin, Will & Anderson, Kym, 2011. "Export restrictions and price insulation during commodity price booms," Policy Research Working Paper Series 5645, The World Bank.
- Anderson, Kym & Nelgen, Signe, 2012. "Trade Barrier Volatility and Agricultural Price Stabilization," World Development, Elsevier, vol. 40(1), pages 36-48.
- Anderson, Kym & Nelgen, Signe, 2010. "Trade Barrier Volatility and Agricultural Price Stabilization," CEPR Discussion Papers 8102, C.E.P.R. Discussion Papers.
- Kym Anderson & Signe Nelgen, 2010. "Trade Barrier Volatility and Agricultural Price Stabilization," Centre for International Economic Studies Working Papers 2010-16, University of Adelaide, Centre for International Economic Studies.
- Mariano, Marc Jim M. & Giesecke, James A., 2014. "The macroeconomic and food security implications of price interventions in the Philippine rice market," Economic Modelling, Elsevier, vol. 37(C), pages 350-361.
- Briones, Roehlano M., 2013. "Philippine Agriculture to 2020: Threats and Opportunities from Global Trade," Discussion Papers DP 2013-14, Philippine Institute for Development Studies.
- Joaquim Bento de Souza Ferreira Filho & Mark Horridge, 2011. "Ethanol expansion and indirect land use change in Brazil," Working Papers 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.
- Hanoch, Giora, 1971. "CRESH Production Functions," Econometrica, Econometric Society, vol. 39(5), pages 695-712, September.
- 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.
- Harry Gorter & Dusan Drabik & David R. Just & Erika M. Kliauga, 2013. "The impact of OECD biofuels policies on developing countries," Agricultural Economics, International Association of Agricultural Economists, vol. 44(4-5), pages 477-486, 07.
- Magno, Romina C. & Yanagida, John F., 2000. "Effect of Trade Liberalization in the Short-Grain Japonica Rice Market: A Spatial-Temporal Equilibrium analysis," Philippine Journal of Development JPD 2000 Vol. XXVII No. 1, Philippine Institute for Development Studies.
- 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).
- Salehezadeh, Zohre & Henneberry, Shida Rastegari, 2002. "The economic impacts of trade liberalization and factor mobility: the case of the Philippines," Journal of Policy Modeling, Elsevier, vol. 24(5), pages 483-486, August.
- 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.
- Timmer, C. Peter, 2010. "Reflections on food crises past," Food Policy, Elsevier, vol. 35(1), pages 1-11, February.
- 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).
- 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.
- Intal, Ponciano Jr. S. & Cu, Leah Francine & Illescas, Jo Anne, 2012. "Rice Prices and the National Food Authority," Discussion Papers DP 2012-27, Philippine Institute for Development Studies.
- Hamid R. Alavi & Aira Htenas & Ron Kopicki & Andrew W. Shepherd & Ramon Clarete, 2012. "Trusting Trade and the Private Sector for Food Security in Southeast Asia," World Bank Publications, The World Bank, number 2384, September. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:cop:wpaper:g-245. 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: (Mark Horridge)
If references are entirely missing, you can add them using this form.