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International Farm Prices and the Social Cost of Cheap Food Policies
Author(s) -
Peterson Willis L.
Publication year - 1979
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1239495
Subject(s) - agriculture , economics , agricultural economics , food prices , elasticity (physics) , price elasticity of demand , price elasticity of supply , monetary economics , microeconomics , food security , geography , materials science , archaeology , composite material
The evidence suggests that real prices received by farmers in the LDCs have been substantially lower than farm prices in the developed nations. Estimates of a long‐run aggregate agricultural supply elasticity from cross‐section data reveal that it is relatively elastic, in the range of 1.25 to 1.66. It is estimated also that with more favorable farm prices agricultural output in a group of twenty‐seven LDCs could have been 40% to 60% greater than it was and the national income of the group increased by more than 3% annually.