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Redistribution of social benefits from advances in extension and research in the Tanzanian maize industry
Author(s) -
Nkonya Ephraim M.,
Parcell Joe L.
Publication year - 1999
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.1574-0862.1999.tb00597.x
Subject(s) - economic surplus , redistribution (election) , revenue , business , economics , payment , welfare , production (economics) , government (linguistics) , public economics , market economy , microeconomics , finance , politics , political science , law , linguistics , philosophy
This study determined consumer and producer welfare gains from advances in extension and research in the maize industry of Tanzania to determine how a national taxing schedule should be determined. It was found that, for an off‐farm marketable surplus of 40%, consumers and producers gain equally, while for an off‐farm marketable surplus of 60%, consumers realize 75% of the welfare benefits. This suggests that consumers and producers should share equally in a revenue generating tax for funding maize research and extension programs. However, for large producers with a marketable surplus of 60% or more, their tax should decrease proportionally to the amount sold. Alternatively, if taxed equally, large‐scale producers should receive some form of compensation through direct government payments.