First-Best and Second-Best Policies of Pricing an Imported Input: The Case of Fertilizer in Taiwan, 1950–1966

Robert C. Hsu

American Journal of Agricultural Economics, 1974, vol. 56, issue 2, 314-322

Abstract: Under a government-peasant fertilizer-rice barter system in Taiwan, the use of chemical fertilizer is heavily taxed through a high fertilizer-rice exchange ratio. Important economic gains can be realized if the government lowers the tax on fertilizer input and raises, if necessary, the tax on rice output instead.

Date: 1974
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