Welfare Analysis of Guarantee Price Marketing Program for aiwan ── An Application of Disequilibrium Market Model

• Main Authors: Rong-Fang Wu, 吳榮芳
• Other Authors: Joyce Jong-Wen Wann
• Format: Others
• Language: zh-TW
• Published: 1994
• Online Access: http://ndltd.ncl.edu.tw/handle/03587062420535300394

碩士 === 國立中興大學 === 農業經濟學系 === 82 === In order to abound the supply of vegetables to stabilize market prices and ensure farmers' profits, the government has established the "Guarantee Fund of Summer Vegetables" and conducted guaranteed price marketing program for selected summer vegetables since 1976. The primary objective of this research is to analyse the welfare effects of the summer vegetable marketing program based on different guaranteed prices and quantity under a disequilibrium market setting. Chinese cabbage which is the leading crop in guaranteed quantity and subsidy was chosen for empirical study. Consi- dering the availability of the market program, only the Taipei fruit and vegetable wholesale is included as the market scope of this research. Primary findings from empirical results are as follows: 1.The guranteed price marketing program is effective controling the product source of Chinese cabbage by the market. 2.The market price of Chinese cabbage during summer period can'not adjust completely. While the speed of adjustment on supply side is slower than does the demand side. 3.The price elasticities of supply and demand for Chinese cabbage will be overestimated in absolute term based on an equilibrium market model. 4.Social welfare would be better off if the highest and the lowest prices in last five years were excluded when esta- bilishing the guaranteed price for Chinese cabbage. 5.The social welfare will increase when adding 10% of the con- tracting quantity to the current system. 6.If guaranteed price is set at the level of monthly average price of the last five years, it will reduce the stability of market price for Chinese cabbage.