Abstract
In this paper economic models are developed for evaluating the size and the distribution of agricultural research benefits in markets distorted by government-induced price policies. In the empirical analysis the results with outcomes for a distorted market are compared with those for a free market. It is reported in the paper that the net benefits to country A from demand-increasing research may be larger or smaller in the presence of a price policy than under free trade, depending on the type of price distortion concerned. An implication of the analysis is that if the net benefits are larger with a free than with a distorted market, economic efficiency accruing to demand-enhancing research may be increased if the government eliminates such distortion.
Original language | English |
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Pages (from-to) | 45-58 |
Number of pages | 14 |
Journal | Economic Analysis and Policy |
Volume | 23 |
Issue number | 1 |
DOIs | |
Publication status | Published - 1 Mar 1993 |
Externally published | Yes |