Policy Preference Functions: The Implications of Recent Developments

Stephan von Cramon-Taubadel

No 198043, 1997 Occasional Paper Series No. 7 from International Association of Agricultural Economists

Abstract: The policy preference function (PPF) approach continues to be the subject of considerable interest in agricultural economics. Recent work has added sophistication and strengthened the approach's theoretical underpinnings. In this paper, several implications of this recent work are considered. First, the distinction between the PPF and the surplus transformation curve (STC) is stressed. Estimated PPF weights are derived from what we know about the STC. We actually know very little about the PPF itself. Second, the relationship between the number of interest groups and the number of policy tools in PPF models is discussed. The relationship that is mathematically necessary may not correspond to that which is suggested by our intuition about reality. Hence, it may be that PPF modelling is often inappropriate. Finally, the stochastic nature of PPF estimates is discussed, and a simple method for quantifying the variability of these estimates is illustrated.

Keywords: Political Economy; Public Economics (search for similar items in EconPapers)
Pages: 7
Date: 1997
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/198043/files/a ... pers-1997-005_1_.pdf (application/pdf)

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: https://EconPapers.repec.org/RePEc:ags:iaaeo7:198043

DOI: 10.22004/ag.econ.198043

Access Statistics for this paper

More papers in 1997 Occasional Paper Series No. 7 from International Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().