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The Welfare Effects of Deregulatin Producer Prices
Author(s) -
Fraser Robert W.
Publication year - 1992
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 - 10.2307/1242986
Subject(s) - deregulation , welfare , economics , short run , range (aeronautics) , public economics , microeconomics , monetary economics , market economy , materials science , composite material
A method is presented for examining producer welfare impacts of a range of deregulation proposals, including a reduction in price support. Welfare impacts take account not just of expected transfer effects but of changes in the uncertain conditions facing producers. The method is applied to deregulation proposals for the Australian wheat industry. Results suggest producers would benefit under some proposals but be made worse off under others. Supply responses also are estimated and shown to be generally smaller in percentage terms than are short‐run welfare effects. It is argued that short‐run and long‐run welfare effects are similar.