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Import quotas, price ceilings, and pricing behavior in Taiwan's flour industry
Author(s) -
Ma TayCheng
Publication year - 2007
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/agr.20107
Subject(s) - agribusiness , economics , profit (economics) , profit margin , agricultural economics , microeconomics , agriculture , ecology , finance , biology
Abstract With the use of data from Taiwan's flour market, this article studies the impacts of wheat import quotas and flour price ceilings on the market. The evidence indicates that flour prices were set above competitive equilibrium levels during most of the regulation period. The high prices and profit margins earned in the regulation period were due to nonbinding price ceilings as well as binding import quotas. © 2007 Wiley Periodicals, Inc. Agribusiness 23: 1–15, 2007.