IDEAS home Printed from https://ideas.repec.org/p/ias/fpaper/92-wp94.html
   My bibliography  Save this paper

Theory and Measurement of Producer Response under Quotas, The

Author

Listed:
  • Lilyan E. Fulginiti
  • Richard K. Perrin

Abstract

Tobin and Houthakker's (1950-51) work on consumer behavior under quantity rationing has been extended by many authors, especially through the use of duality theory. This paper uses duality theory to extend the work on demand theory under rationing to the case of producer behavior under quotas. These results permit estimation of otherwise unobservable market supply and demand structures. The structure of the farm economy operating under a tobacco quota system is estimated, and the theory is utilized to infer that the supply elasticity of tobacco would be about 7.0 if the quotas were removed. Estimates such as this are not normally attainable without the theory outlined here, even though they are essential for the evaluation of policy changes.

Suggested Citation

  • Lilyan E. Fulginiti & Richard K. Perrin, 1992. "Theory and Measurement of Producer Response under Quotas, The," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 92-wp94, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    • Handle: RePEc:ias:fpaper:92-wp94
    as

    Download full text from publisher

    File URL: https://www.card.iastate.edu/products/publications/pdf/92wp94.pdf
    File Function: Full Text
    Download Restriction: no
    File URL: https://www.card.iastate.edu/products/publications/synopsis/?p=646
    File Function: Online Synopsis
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Muellbauer, John & Portes, Richard, 1978. "Macroeconomic Models with Quantity Rationing," Economic Journal, Royal Economic Society, vol. 88(352), pages 788-821, December.
    2. Neary, J. P. & Roberts, K. W. S., 1980. "The theory of household behaviour under rationing," European Economic Review, Elsevier, vol. 13(1), pages 25-42, January.
    3. Giancarlo Moschini, 1988. "A Model of Production with Supply Management for the Canadian Agricultural Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(2), pages 318-329.
    4. Robert A. Pollak, 1969. "Conditional Demand Functions and Consumption Theory," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 83(1), pages 60-78.
    5. Rucker, Randal R. & Thurman, Walter N. & Sumner, Daniel A., 1990. "Production Rights with Limited Transferability: A Case Study of the U. S. Tobacco and Peanut Programs," 1990 Annual meeting, August 5-8, Vancouver, Canada 271050, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chen, Dabai, 1990. "Plan and market(s): a theoretical model of the Chinese grain economy," ISU General Staff Papers 1990010108000010424, Iowa State University, Department of Economics.
    2. Kan, Kamhon & Fu, Tsu-Tan, 1997. "Analysis of Housewives' Grocery Shopping Behavior in Taiwan: An Application of the Poisson Switching Regression," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 29(2), pages 397-407, December.
    3. Tikoudis, Ioannis, 2023. "Revisiting the Pigouvian tax in urban roads: Housing supply restrictions, leaking profits and spatial inequality," Economics of Transportation, Elsevier, vol. 35(C).
    4. David Aristei & Luca Pieroni, 2005. "Estimating the Role of Government Expenditure in Long-run Consumption," Quaderni del Dipartimento di Economia, Finanza e Statistica 13/2005, Università di Perugia, Dipartimento Economia.
    5. Fortin, Bernard & Lacroix, Guy & Montmarquette, Claude, 2000. "Are Underground Workers More Likely to be Underground Consumers?," Economic Journal, Royal Economic Society, vol. 110(466), pages 838-860, October.
    6. Luca Pieroni, 2007. "How Strong is the Relationship between Defence Expenditure and Private Consumption? Evidence from the United States," Working Papers 0705, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
    7. Jesse Cunha, 2010. "Testing Paternalism: Cash vs. In-kind Transfer in Rural Mexico," Discussion Papers 09-021, Stanford Institute for Economic Policy Research.
    8. Pieroni, Luca, 2009. "Does defence expenditure affect private consumption? Evidence from the United States," Economic Modelling, Elsevier, vol. 26(6), pages 1300-1309, November.
    9. Park, Hoanjae, 1997. "Randall and Stoll's bound in an inverse demand system," Economics Letters, Elsevier, vol. 56(3), pages 281-286, November.
    10. Kakwani, Nanak & Ray, Ranjan, 1989. "Optimal commodity taxes under rationing," Policy Research Working Paper Series 203, The World Bank.
    11. repec:bla:scandj:v:89:y:1987:i:2:p:165-82 is not listed on IDEAS
    12. Garcia, Inmaculada & Molina, Jose Alberto, 2001. "Labour Supply and Inequality for Wage-Earning Farm Households in Spain," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 2(1), pages 1-24, January.
    13. Plassard, Romain & Renault, Matthieu, 2023. "General equilibrium models with rationing: The making of a ‘European specialty’," European Economic Review, Elsevier, vol. 159(C).
    14. Christopher J. O'Leary, 1990. "An Econometric Analysis of Unemployment Insurance Benefit Adequacy," Upjohn Working Papers 90-05, W.E. Upjohn Institute for Employment Research.
    15. Roberts, Kevin, 1999. "Rationality and the LeChatelier Principle," Journal of Economic Theory, Elsevier, vol. 87(2), pages 416-428, August.
    16. Herve Guyomard & Louis Pascal Mahe, 1993. "Producer behaviour under rationing," Post-Print hal-01595196, HAL.
    17. Snow, Arthur & Warren, Ronald S., 2015. "Pigou’s Law and the proportionality of income and price elasticities of demand," Economics Letters, Elsevier, vol. 132(C), pages 136-138.
    18. van der Ploeg, F., 1987. "Rationing in open economy and dynamic macroeconomics : A survey," Other publications TiSEM fd411b51-f487-4dde-a0e9-6, Tilburg University, School of Economics and Management.
    19. D. Aristei & Luca Pieroni, 2008. "Cointegration Rank Test and Long Run Specification: A Note on the Robustness of Structural Demand Systems," Working Papers 0809, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
    20. Alho, Kari, . "Analysis of Financial Markets and Central Bank Policy in the Flow-of-Funds Framework. An Application to the Case of Finland," ETLA A, The Research Institute of the Finnish Economy, number 12, June.
    21. George Tridimas, 2002. "The Dependence of Private Consumer Demand on Public Consumption Expenditures: Theory and Evidence," Public Finance Review, , vol. 30(4), pages 251-272, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ias:fpaper:92-wp94. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/faiasus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.