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Output and Input Subsidy Policy Options in Bangladesh

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  • Nehring, Richard F.

Abstract

Recent changes in pricing policies emphasizing price supports and phasing out fertilizer subsidies are a step in the right direction, particularly if minimizing the combined foreign exchange and budgetary expenditures of Bangladesh and donor nations is the key objective. A normalized restricted profit function is used to estimate profit and factor demand functions from farm-level, cross-sectional data for the food grain and jute crops in Bangladesh. The estimated elasticities are used to evealuate price support and fertilizer subsidy programs in terms of then costs to the government, foreign exchange effects and producer surplus for the food grain and jute sectors.

Suggested Citation

  • Nehring, Richard F., 1991. "Output and Input Subsidy Policy Options in Bangladesh," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 43(2), pages 1-13.
    • Handle: RePEc:ags:uersja:138269
    DOI: 10.22004/ag.econ.138269
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    References listed on IDEAS

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    1. Rao, J. Mohan, 1989. "Agricultural supply response: A survey," Agricultural Economics, Blackwell, vol. 3(1), pages 1-22, March.
    2. Ramon E. Lopez, 1984. "Estimating Substitution and Expansion Effects Using a Profit Function Framework," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(3), pages 358-367.
    3. J. Mohan Rao, 1989. "Agricultural Supply Response: A Survey," Agricultural Economics, International Association of Agricultural Economists, vol. 3(1), pages 1-22, March.
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    Cited by:

    1. Gretton, Paul & Salma, Umme, 1997. "Land degradation: links to agricultural output and profitability," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 41(2), pages 1-17.

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