Agricultural Supply Chains under Government Interventions
Agricultural Supply Chains under Government Interventions
复制标题
DOI:
--
复制
发表时间:
2016
期刊:
影响因子:
--
通讯作者:
Duygu Akkaya;Kostas Bimpikis;Hau L. Lee
中科院分区:
文献类型:
--
作者:
Duygu Akkaya;Kostas Bimpikis;Hau L. Lee
The agricultural sector, especially in developing economies, is subject to uncertainties that may adversely affect farmers’ yields and realized incomes. Government support is often used to ensure steady incomes for the farmers and a reliable supply of agricultural commodities. We study a regional market with a population of farmers subject to random yield serving a continuum of consumers. We investigate the effectiveness of three types of interventions, price support, cost support, and yield enhancement efforts, as well as different policy implementation methods such as announcing the total budget or the unit support, in terms of their impact on farmers’ incomes, consumer surplus, and return on government spending. It is shown that price and cost support interventions are equivalent if the total budget is public information. On the other hand, if the government announces the unit support, the benefit to different stakeholders along the agricultural supply chain depends on the market distortion created by the intervention. Specifically, in this case, price support results in greater distortion, benefiting consumers more than cost support whereas the converse holds for farmers. Furthermore, we find that under yield enhancing efforts, farmers may incur losses due to the interplay of several market and crop characteristics. Lastly, we show that interventions cannot always generate positive return from the government’s perspective.