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Welfare Effects of Selected Food‐grain Policies in India
Author(s) -
Chetty V.K.,
Srinivasan P.V.
Publication year - 1990
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/j.1574-0862.1990.tb00116.x
Subject(s) - economics , welfare , market clearing , public policy , order (exchange) , economic interventionism , distribution (mathematics) , dual (grammatical number) , aggregate demand , government (linguistics) , supply and demand , agricultural economics , food policy , aggregate supply , food supply , public economics , microeconomics , agriculture , market economy , food security , macroeconomics , economic growth , monetary policy , art , philosophy , mathematics , law , mathematical analysis , ecology , linguistics , literature , biology , political science , finance , politics
Government's policy interventions in the market for food‐grains affect supply as well as demand. In this paper, the welfare effects of certain food‐grain policies are analysed while taking into account the interdependence of the various sectors in the economy. Adequate structure is built into the model in order to study the effects of a dual price structure on farmers' supply response, and also the effects of public distribution schemes on the aggregate demand for food‐grains. Policy implications are derived by computing the market clearing prices and their movement under alternative assumptions regarding the nature of the market.