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First-Best and Second-Best Policies of Pricing an Imported Input: The Case of Fertilizer in Taiwan, 1950–1966

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  • Robert C. Hsu

Abstract

Under a government-peasant fertilizer-rice barter system in Taiwan, the use of chemical fertilizer is heavily taxed through a high fertilizer-rice exchange ratio. Important economic gains can be realized if the government lowers the tax on fertilizer input and raises, if necessary, the tax on rice output instead.

Suggested Citation

  • Robert C. Hsu, 1974. "First-Best and Second-Best Policies of Pricing an Imported Input: The Case of Fertilizer in Taiwan, 1950–1966," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(2), pages 314-322.
    • Handle: RePEc:oup:ajagec:v:56:y:1974:i:2:p:314-322.
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    File URL: http://hdl.handle.net/10.2307/1238762
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