Input-Output Analysis of Agricultural Production Quotas: A Case Study of the Hokkaido Region

N Fujita

The Annals of Regional Science, 1989, vol. 23, issue 1, 50 pages

Abstract: Production quotas have been one of the most influential forms of government intervention in the production activities of the agricultural sector in Japan. With this in mind, the potential effects of a policy to decrease the gross output of the agricultural sector in the economy of the Hokkaido region are evaluated using a mixed input-output model. The gross output of the agricultural sector is specified exogenously, and the potential effects of a policy to subsidize the agricultural sector are evaluated. Results reveal that the non-agricultural sectors are deleteriously affected by such output reduction when "income linkages" are taken into consideration. However, the benefits of subsidies to the agricultural sector effectively counterbalance the costs incurred by the non-agricultural sectors.

Date: 1989
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