Testing for the Efficiency of a Policy Intended to Meet Objectives: General Model and Application

This study presents a general model demonstrating how to measure the (in)efficiency of a policy intended to meet objectives. If it is assumed that the government has available only those policy instruments it actually utilizes, our method is a test as to whether the government combines these instruments efficiently. In addition, one could also include other policy instruments, which are not actually used, but are available to the government. Our general model is applied to bread grain policy in Austria. The primary result is that the policy was quite inefficient in meeting the two main objectives of farm income support and self-sufficiency. The stochastic nature of our efficiency measures is acknowledged by taking into account the inherent uncertainty of model parameters. A response surface function is used to identify those parameters which contribute most to model output uncertainty.


Issue Date:
2006-08
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/8613
Published in:
Journal of Agricultural and Resource Economics, Volume 31, Number 2
Page range:
151-172
Total Pages:
22




 Record created 2017-04-01, last modified 2017-08-23

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