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Testing for Efficiency: A Policy Analysis with Probability Distributions

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  • Salhofer, Klaus
  • Schmid, Erwin
  • Streicher, Gerhard
  • Schneider, Friedrich

Abstract

The study evaluates the efficiency of government intervention using a vertically-structured model including imperfectly competitive agricultural input markets, a bread grain market, and an imperfectly competitive food industry. An actually observed bread grain policy is compared to a hypothetical efficient policy. Computer-intensive simulation procedures and surface response functions are utilized to account for the sensitivity of model results with respect to 10,000 normal distributed parameter sets.

Suggested Citation

  • Salhofer, Klaus & Schmid, Erwin & Streicher, Gerhard & Schneider, Friedrich, 2005. "Testing for Efficiency: A Policy Analysis with Probability Distributions," 89th Seminar, February 2-5, 2005, Parma, Italy 239277, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae89:239277
    DOI: 10.22004/ag.econ.239277
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    1. Zhao, Xueyan & Griffiths, William E. & Griffith, Garry R. & Mullen, John D., 2000. "Probability distributions for economic surplus changes: the case of technical change in the Australian wool industry," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(1), pages 1-24.
    2. Horan, Richard D. & Claassen, Roger & Howe, Lance, 2001. "The Welfare Sensitivity Of Agri-Environmental Instruments," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(2), pages 1-19, December.
    3. Salhofer, Klaus & Hofreither, Markus F & Sinabell, Franz, 2000. "Promotion of the Agricultural Sector and Political Power in Austria," Public Choice, Springer, vol. 102(3-4), pages 229-246, March.
    4. Salhofer, Klaus & Schmid, Erwin, 2004. "Distributive leakages of agricultural support: some empirical evidence," Agricultural Economics, Blackwell, vol. 30(1), pages 51-62, January.
    5. Gardner, Bruce L, 1992. "Changing Economic Perspectives on the Farm Problem," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 62-101, March.
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    Cited by:

    1. Bullock, David S. & Salhofer, Klaus, 2003. "Judging agricultural policies: a survey," Agricultural Economics, Blackwell, vol. 28(3), pages 225-243, May.
    2. Salhofer, Klaus & Schmid, Erwin, 2004. "Distributive leakages of agricultural support: some empirical evidence," Agricultural Economics, Blackwell, vol. 30(1), pages 51-62, January.

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