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The Welfare Effects of Deregulatin Producer Prices

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  • Robert W. Fraser

Abstract

A method is presented for examining producer welfare impacts of a range of deregulation proposals, including a reduction in price support. Welfare impacts take account not just of expected transfer effects but of changes in the uncertain conditions facing producers. The method is applied to deregulation proposals for the Australian wheat industry. Results suggest producers would benefit under some proposals but be made worse off under others. Supply responses also are estimated and shown to be generally smaller in percentage terms than are short-run welfare effects. It is argued that short-run and long-run welfare effects are similar.

Suggested Citation

  • Robert W. Fraser, 1992. "The Welfare Effects of Deregulatin Producer Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(1), pages 21-26.
    • Handle: RePEc:oup:ajagec:v:74:y:1992:i:1:p:21-26.
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    File URL: http://hdl.handle.net/10.2307/1242986
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    Cited by:

    1. David S. Bullock & Klaus Salhofer & Jukka Kola, 1999. "The Normative Analysis of Agricultural Policy: A General Framework and Review," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 512-535, September.

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