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Technology Adoption and Agricultural Price Policy
Author(s) -
Miller Tracy,
Tolley George
Publication year - 1989
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 - 10.2307/1242662
Subject(s) - subsidy , economics , agriculture , production (economics) , resource allocation , microeconomics , agricultural economics , natural resource economics , resource (disambiguation) , price policy , agricultural policy , public economics , market economy , ecology , computer network , computer science , biology
Market interventions such as price supports or fertilizer subsidies can lead to gains from speeding up adoption of new technologies, but the policies distort resource allocation. A framework is developed for optimizing policies in light of the adoption‐allocation trade off. Based on adoption coefficients and production parameters from third world agriculture, levels and duration of policies are estimated. Sensitivity analyses are performed. Gains are small at best and may be zero or negative in view of farmer costs of adjustment and deadweight losses from taxes.