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Relative Cost‐Effectiveness Of Input And Output Subsidies

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  • Ross M. Parish
  • Keith Robert McLaren

Abstract

A subsidy on a single input is compared with an output subsidy as a means of stimulating output, and the conditions under which the single input subsidy is (a) more treasury cost-effective and (b) overall the more socially efficient measure, are explored. Rationalisations for input subsidies, particularly fertiliser subsidies, are examined in the light of the results.
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Suggested Citation

  • Ross M. Parish & Keith Robert McLaren, 1982. "Relative Cost‐Effectiveness Of Input And Output Subsidies," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 26(1), pages 1-13, April.
    • Handle: RePEc:bla:ajarec:v:26:y:1982:i:1:p:1-13
    DOI: j.1467-8489.1982.tb00404.x
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    References listed on IDEAS

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    1. Krueger, Anne O, 1974. "The Political Economy of the Rent-Seeking Society," American Economic Review, American Economic Association, vol. 64(3), pages 291-303, June.
    2. Randolph Barker & Yujiro Hayami, 1978. "Price Support Versus Input Subsidy for Food Self-Sufficiency in Developing Countries," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 26, pages 221-240, Juni.
    3. R.G. Mauldon, 1967. "Bounties For Fertilizers," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 11(2), pages 133-143, December.
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    Cited by:

    1. Gamal Atallah, 2019. "Subsidizing Innovation and Production," Revista Economía, Fondo Editorial - Pontificia Universidad Católica del Perú, vol. 42(84), pages 9-35.
    2. Heisey, Paul W. & Mwangi, Wilfred, 1996. "Fertilizer Use and Maize Production in Sub-Saharan Africa," Economics Working Papers 7688, CIMMYT: International Maize and Wheat Improvement Center.
    3. Dixon, J.M., 1988. "Inorganic Fertiliser Inputs to Himalayan Agriculture: Some Issues in Pricing," 1988 Conference (32nd), February 8-11, 1988, Melbourne, Australia 144027, Australian Agricultural and Resource Economics Society.
    4. Asraul Hoque, 1993. "Allocative Efficiency and Input Subsidy in Asian Agriculture," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 32(1), pages 87-99.
    5. Joseph E. Aldy & Todd D. Gerarden & Richard L. Sweeney, 2023. "Investment versus Output Subsidies: Implications of Alternative Incentives for Wind Energy," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 10(4), pages 981-1018.
    6. Edwards, Geoff W., 1985. "Frontiers in Agricultural Policy Research: Discussion," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 53(02), pages 1-6, August.
    7. Jarrett, Frank G., 1983. "The Balderstone Report: An Overview," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 27(2), pages 1-7, August.
    8. Scrimitore, Marcella, 2014. "Quantity competition vs. price competition under optimal subsidy in a mixed oligopoly," Economic Modelling, Elsevier, vol. 42(C), pages 166-176.
    9. Beaudoin, Justin & Chen, Yuan & Heres, David R. & Kheiravar, Khaled H. & Lade, Gabriel E. & Yi, Fujin & Zhang, Wei & Lin Lawell, C.-Y. Cynthia, 2018. "Environmental Policies in the Transportation Sector: Taxes, Subsidies, Mandates, Restrictions, and Investment," ISU General Staff Papers 201808150700001050, Iowa State University, Department of Economics.
    10. Fisher, Brian S., 1985. "Frontiers in Agricultural Policy Research," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 53(02), pages 1-11, August.
    11. Geoff W. Edwards, 1987. "Agricultural Policy Debate: A Survey," The Economic Record, The Economic Society of Australia, vol. 63(2), pages 129-143, June.
    12. Crawford, Eric W. & Jayne, Thomas S. & Kelly, Valerie A., 2005. "Alternative Approaches for Promoting Fertilizer Use in Africa, with Particular Reference to the Role of Fertilizer Subsidies," Staff Paper Series 11557, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    13. Gautam, Madhur, 2015. "Agricultural Subsidies: Resurging Interest in a Perennial Debate," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 70(1), pages 1-23.

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