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Abstract

This study analyzes social benefits created by Ceará government incentives to papaya producers from 2001 to 2006. As theoretical basis, it was considered an approach of the economic surplus of Marshall and simultaneous equations model. Results indicate that the supply price-elasticity of papaya is very high. In spite of the decrease in quotes, there was a boost in the average amount supplied. The reduction in prices and increases in quantity are responsible for the rise in the society welfare. The aggregate value of total and per capita social benefits were of 3,163,045.00 reais and 39 cents of real, respectively. It shows the importance of actions taken by the government to reduce the cost of production in order to stimulate the development of fruit crops at Ceara state. The total social benefits of 4,690,042.00 reais were obtained by creating direct job opportunities of 1,876,016.00 reais and indirect employments of 2,814,025.00 reais. The producers received a boost in their average per capita income and total revenue of 167.05 percent and 282.74 percent, respectively. As a result, it is possible to conclude that many programs related to promote fruit production in Ceará have showed a boosting trend in production of papaya and in number of employments created.

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