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Stabilization and welfare with trade, variable levies and internal price policies

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  • DAVID BIGMAN

Abstract

This paper analyzes the effects of different internal price and trade policies on the consumption, production and prices of agricultural primary products. Government policies are evaluated in the light of their effect on price stability, on the stability of supply flows, on income in the farm sector and on the overall welfare and distribution of national income. The study analyzes both individual and combined policies on the basis of these performance criteria and shows that trade and the use of variable levies to stabilize the domestic market through trade are indeed very powerful and efficient ways of achieving the goals of agricultural policies. At the same time, however, these policies may have undesirable side effects to which the policy maker should be alert.

Suggested Citation

  • David Bigman, 1980. "Stabilization and welfare with trade, variable levies and internal price policies," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 7(2), pages 185-202.
    • Handle: RePEc:oup:erevae:v:7:y:1980:i:2:p:185-202.
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    File URL: http://hdl.handle.net/10.1093/erae/7.2.185
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    Cited by:

    1. Jha, Shikha & Srinivasan, P. V., 2001. "Food inventory policies under liberalized trade," International Journal of Production Economics, Elsevier, vol. 71(1-3), pages 21-29, May.
    2. Srinivasan, P. V. & Jha, Shikha, 2001. "Liberalized trade and domestic price stability. The case of rice and wheat in India," Journal of Development Economics, Elsevier, vol. 65(2), pages 417-441, August.

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