Efficient income redistribution through agricultural import tariffs and deficiency payments
2009
Muto, Y.(Kyoto Univ. (Japan))
In a country with a low comparative advantage in agriculture, the government can use agricultural import tariffs and/or deficiency payments in order to transfer income to agricultural producers by raising agricultural producer prices. However, these policy measures generally exacerbate consumers' and/or taxpayers' welfare, thereby yielding deadweight losses in the economy. This paper defines efficient income redistribution policy for such a country as the combination of agricultural import tariff and deficiency payment that minimizes the deadweight loss associated with a given income transfer to agricultural producers. The paper analyzes what combination of agricultural import tariff and deficiency payment constitutes the efficient income redistribution policy for such a country. In the case of a large agricultural importing country, the income transfer level is shown to significantly affect the combination of agricultural import tariff and deficiency payment that constitutes the efficient income redistribution policy.
Afficher plus [+] Moins [-]Mots clés AGROVOC
Informations bibliographiques
Cette notice bibliographique a été fournie par The Agriculture, Forestry and Fisheries Research Information Technology Center
Découvrez la collection de ce fournisseur de données dans AGRIS
