Producer Price Equalization

Most previous studies of home consumption pricing and producer price equalisation schemes have concentrated on static economic surplus effects under an assumption of a perfectly elastic export demand. This paper compares the effects of different types of producer price equalisation schemes with free trade in the wheat, milk and egg industries allowing for a downward sloping export demand. Average values and variances of prices, quantities, revenues, and economic surplus measures are estimated for each policy in a simulation model allowing a range of values for elasticities of supply and demand, market shares, and variability of supply and export demand. The stabilisation effects of equalisation schemes are evaluated using these estimates.


Issue Date:
1988-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/12270
Published in:
Review of Marketing and Agricultural Economics, Volume 56, Number 03
Page range:
306-339
Total Pages:
34




 Record created 2017-04-01, last modified 2017-10-21

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