A Microeconomic Model for Subsidies Allocation: the Case of Belarus

The paper develops a microeconomic methodological framework that allows approaching subsidy allocation across the types of assets and impact of subsidies on agricultural outputs and profits. The methodology is based on a non-parametric production frontier estimation. The empirical application is made to 1084 Belarusian corporate farms. The results suggest targeting governmental support at grain and milk production. In this case, 4.14 trillion Belarusian roubles of subsidies increase the overall profit of the sample farms by 1.46 trillion. In the case of targeting, the farms with higher overall efficiency are more sensitive to the support and are able to absorb larger amount of subsidies. The opposite is true in the absence of targeting.


Issue Date:
Jun 16 2010
Publication Type:
Conference Paper/ Presentation
DOI and Other Identifiers:
ISBN 978-3-938584-50-7 (Other)
PURL Identifier:
http://purl.umn.edu/90826
Total Pages:
15
JEL Codes:
K18; C61




 Record created 2017-04-01, last modified 2017-08-25

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)