The Social Profitability of Subsidies for Agricultural Exports: The Case of Ghana

Walter Haessel and Edward Vickery

American Journal of Agricultural Economics, 1975, vol. 57, issue 1, 11-20

Abstract: A framework is developed to estimate the social profitability of export subsidies. The approach indicates whether a definite gain has been obtained even though the new equilibrium is not a first best. A method is provided for measuring consumer surplus when the demand curve shifts as a consequence of the policy. The technique is applied to selected agricultural exports from Ghana. It is found that while the subsidies would be profitable there would also be a heavy fiscal burden associated with the subsidies even though the subsidy scheme may be partly self-financing.

Date: 1975
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Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:57:y:1975:i:1:p:11-20.

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