Economics at your fingertips  

Measuring the Welfare Costs of Supply Management: The Role of Indirect Benefits

Gerrit van Kooten

European Review of Agricultural Economics, 1990, vol. 17, issue 1, 57-67

Abstract: This study indicates that it is important to take into account what happens in other markets when evaluating the social costs of government agricultural programs. However, indirect benefits (costs) accruing in other markets are only to be measured if those markets are distorted (price does not equal marginal cost). An empirical application from supply management in Canadian agriculture is provided. The results suggest that, if other markets are ignored, the social costs of supply restrictions may be overestimated by 50 percent. This is quite a large relative error indeed if one is interested in evaluating public policy from a social welfare standpoint. Copyright 1990 by Oxford University Press.

Date: 1990
References: Add references at CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from

Access Statistics for this article

European Review of Agricultural Economics is currently edited by Christoph Weiss, Thomas Heckelei and Paolo Sckokai

More articles in European Review of Agricultural Economics from Foundation for the European Review of Agricultural Economics Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().

Page updated 2021-09-16
Handle: RePEc:oup:erevae:v:17:y:1990:i:1:p:57-67