{"title":"The economic consequences of price support policies in semi-subsistence economies","authors":"Emerta A. Aragie , Scott McDonald","doi":"10.1016/j.jpolmod.2023.11.002","DOIUrl":null,"url":null,"abstract":"<div><p>Semi-subsistence households in developing countries play a considerable role as both producers and consumers of agricultural products, with a substantial part of their consumption contributed by home production for home consumption (HPHC). This study employs a modeling framework that integrates an HPHC augmented database with a modified economywide model that accommodates the distinct features of these households. Results from model simulations with border price shocks and several policy responses indicate that farm households are less influenced by external price shocks but are more responsive to enhancements in the local marketing system. Subsidies to strategic non-food imports during soaring prices appear less effective in inducing agents to engage in production. This finding suggests that the welfare gains reported by studies on price incentives locally, and agricultural policy reforms in developed market economies are likely to be large overestimates of the welfare implications for semi-subsistence households in many of the least developed economies.</p></div>","PeriodicalId":48015,"journal":{"name":"Journal of Policy Modeling","volume":"45 6","pages":"Pages 1148-1166"},"PeriodicalIF":3.5000,"publicationDate":"2023-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Policy Modeling","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0161893823001151","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
Semi-subsistence households in developing countries play a considerable role as both producers and consumers of agricultural products, with a substantial part of their consumption contributed by home production for home consumption (HPHC). This study employs a modeling framework that integrates an HPHC augmented database with a modified economywide model that accommodates the distinct features of these households. Results from model simulations with border price shocks and several policy responses indicate that farm households are less influenced by external price shocks but are more responsive to enhancements in the local marketing system. Subsidies to strategic non-food imports during soaring prices appear less effective in inducing agents to engage in production. This finding suggests that the welfare gains reported by studies on price incentives locally, and agricultural policy reforms in developed market economies are likely to be large overestimates of the welfare implications for semi-subsistence households in many of the least developed economies.
期刊介绍:
The Journal of Policy Modeling is published by Elsevier for the Society for Policy Modeling to provide a forum for analysis and debate concerning international policy issues. The journal addresses questions of critical import to the world community as a whole, and it focuses upon the economic, social, and political interdependencies between national and regional systems. This implies concern with international policies for the promotion of a better life for all human beings and, therefore, concentrates on improved methodological underpinnings for dealing with these problems.