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Efficiency of Supply Control Programmes in Income Redistribution

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  • Kola, Jukka

Abstract

This article evaluates the efficacy of alternative supply control measures in the Finnish dairy market. The capability of measures to reduce excess supplies with the least losses to producers is illustrated by the surplus transformation model. With small income transfers, the prevailing quota system is more efficient than price regulation in income redistribution. However, a considerable improvement in consumer-taxpayer welfare can be reached by price reduction only. The applicability of consumer subsidies suffers from inelastic demand for milk. The results support the argument that producers' strong political influence enables them to avoid the most unfavorable policy choices. Copyright 1993 by Oxford University Press.

Suggested Citation

  • Kola, Jukka, 1993. "Efficiency of Supply Control Programmes in Income Redistribution," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 20(2), pages 183-198.
    • Handle: RePEc:oup:erevae:v:20:y:1993:i:2:p:183-98
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    Cited by:

    1. Firici, M. Carmen & Thomson, Kenneth J., 2002. "Distributional Impacts of CAP Adoption on Romanian Households," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24818, European Association of Agricultural Economists.
    2. Mittenzwei, Klaus, 2002. "Policy Design as an Irreversible Investment Under Uncertainty: Norwegian Agriculture and the WTO," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24875, European Association of Agricultural Economists.
    3. Salhofer, K., 1996. "Efficient income redistribution for a small country using optimal combined instruments," Agricultural Economics, Blackwell, vol. 13(3), pages 191-199, February.
    4. Bullock, David S. & Salhofer, Klaus, 2003. "Judging agricultural policies: a survey," Agricultural Economics, Blackwell, vol. 28(3), pages 225-243, May.
    5. Fertő, Imre, 1998. "Az agrárpolitika politikai gazdaságtana I. A kormányzati politikák modellezése a mezőgazdaságban [The political economy of agrarian politics. Part I. Modeling of governmental policies in agricultur," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(3), pages 223-246.
    6. 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.
    7. D.S. Bullock & K. Salhofer, 1998. "Measuring the social costs of suboptimal combinations of policy instruments: A general framework and an example," Agricultural Economics, International Association of Agricultural Economists, vol. 18(3), pages 249-259, May.
    8. Salhofer, Klaus & Schmid, Erwin, 2004. "Distributive leakages of agricultural support: some empirical evidence," Agricultural Economics, Blackwell, vol. 30(1), pages 51-62, January.
    9. Bullock, David S. & Couleau, Anabelle, 2012. "The U.S. Ethanol and Commodity Policy Labyrinth: Looking into Welfare Space to Analyze Policies that Combine Multiple Instruments," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126901, International Association of Agricultural Economists.

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