Subsidies under uncertainty: Modeling of input- and output-oriented policies

C-Tier
Journal: Economic Modeling
Year: 2020
Volume: 85
Issue: C
Pages: 39-56

Authors (3)

Chen, You-hua (not in RePEc) Chen, Mei-xia (not in RePEc) Mishra, Ashok K. (Arizona State University)

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Agricultural subsidies play an essential role in agricultural and rural development in many developed economies. Countries have implemented agricultural subsidy policies with a focus on food security and environmental protection. Agricultural production is risky and uncertain, influencing the efficiency of agricultural subsidies. This study develops a theoretical framework to analyze the effects of production uncertainties on the efficiency of agricultural subsidy policies under the double constraints of food security and environmental protection. The basic model is investigated under six different conditions, and expanded research also is presented. Our models show that uncertainty, including output, cost, and price uncertainties, and technology conversion efficiency significantly affects the efficiency of agricultural subsidies. Under high technology conversion efficiency, output-oriented subsidies are appropriate for food security and environmental protection goals. Policymakers should take both uncertainty and production efficiency into consideration when choosing between input-oriented and output-oriented subsidy policies.

Technical Details

RePEc Handle
repec:eee:ecmode:v:85:y:2020:i:c:p:39-56
Journal Field
General
Author Count
3
Added to Database
2026-01-26