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Output Price Subsidies in a Stochastic World

Author

Listed:
  • Robert G. Chambers

    (Dept of Agricultural and Resource Economics, University of Maryland, College Park)

  • John Quiggin

    (Department of Economics, University of Queensland)

Abstract

This paper develops an analytically tractable approach to the comparative statics of output subsidies for firms, with monotonic preferences over costs and returns, that face price and production uncertainty. We derive comparative static results for input demand and output supply.

Suggested Citation

  • Robert G. Chambers & John Quiggin, 2004. "Output Price Subsidies in a Stochastic World," Risk & Uncertainty Working Papers WPR04_1, Risk and Sustainable Management Group, University of Queensland.
    • Handle: RePEc:rsm:riskun:r04_1
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    File URL: http://www.uq.edu.au/rsmg/WP/WPR04_1.pdf
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    Cited by:

    1. Wagener, Andreas & Zenker, Juliane, 2018. "Decoupled but not neutral: The effects of stochastic transfers on investment and incomes in rural Thailand," TVSEP Working Papers wp-008, Leibniz Universitaet Hannover, Institute for Environmental Economics and World Trade, Project TVSEP.
    2. Leiwakabessy, Erly & Effendy, Jani & Rijoly, Jacobus Cliff Diky, 2017. "Studies Determinants Of Economic Structural Change And Migration Surprises In Maluku Province," INA-Rxiv vaud5, Center for Open Science.
    3. Andreas Wagener & Juliane Zenker, 2021. "Decoupled but Not Neutral: The Effects of Counter‐Cyclical Cash Transfers on Investment and Incomes in Rural Thailand†," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(5), pages 1637-1660, October.
    4. Md. Tanveer Ahmed & Jun Zhuang & Changhyun Kwon, 2017. "Understanding Conflicting Interests of a Government and a Tobacco Manufacturer: A Game-Theoretic Approach," Group Decision and Negotiation, Springer, vol. 26(6), pages 1209-1230, November.

    More about this item

    Keywords

    state-contingent production; price subsides;

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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