@article{Bale:197129,
      recid = {197129},
      author = {Bale, Malcolm D. and Lutz, Ernst},
      title = {Agricultural Pricing Policies in Developed and Developing  Countries: Their Effects on Efficiency, Distribution, and  Rural Change},
      address = {1981},
      number = {988-2016-77399},
      pages = {4},
      year = {1981},
      abstract = {Agriculture is the main source of food for the world, and  food is the basic input
in the daily sustenance of humans.  Yet, in many parts of the world there is
insufficient food,  which in turn implies inadequate agricultural output.  The
reasons for inadequate agricultural production are many  and varied, ranging from
poor distribution and poor  production techniques to political intervention at
various  levels in the global agricultural complex. The most  important reason for
deficie.nt agricultural output is  difficult to ascertain, but Schultz (1977) left no
doubt as  to his ranking of the causes. He suggested that the level  of agricultural
production depends not so much on technical  considerations, but in large measure
"on what governments  do to agriculture." Schultz has long been the most  ardent
and eloquent spokesman of this position. See, for  example, Schultz, 1964, 1977,
and 1978. Export taxes on  agricultural products provide government revenue and
keep  domesitc prices low, product price supports in developed  countries maintain
farm incomes and provide surpluses which  in turn find their way to developing
country markets to  further depress domestic farm prices, and agricultural  inputs
are frequently either taxed or subsidized. Yet, the  magnitude of these effects
on agricultural output, income  distribution between producers and consumers,
efficiency,  and on rural-urban migration is often not fully  appreciated.
This paper discusses government intervention  in agricultural price determination,
drawing on welfare  theory to quantify the economic impacts on the
previously  mentioned variables. In this study, we examine France,  Federal
Republic of Germany, United Kingdom, Japan,  Yugoslavia, Argentina, Egypt,
Pakistan, and Thailand. The  general theme of the paper is that the  agricultural
policies pursued by developing countries  produce effects which are diametrically
opposite to those  produced by the policies of many developed countries, and  that
the policies of both are costly in terms of global  welfare. Peterson addresses
the developing country side of  this question in a somewhat different manner.},
      url = {http://ageconsearch.umn.edu/record/197129},
      doi = {https://doi.org/10.22004/ag.econ.197129},
}