Simulating the Effects of Supply and Demand Elasticities on Political-Economic Equilibrium
Wallace's (1962) pioneering study brought to agricultural economics a focus on the role of supply and demand elasticity's in determining the efficiency with which agricultural policy transfers income among interest groups. His discussion...
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| Language: | English en_US |
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World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/840971468332983433/Simulating-the-effects-of-supply-and-demand-elasticities-on-political-economic-equilibrium http://hdl.handle.net/10986/28277 |
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okr-10986-282772021-04-23T14:04:46Z Simulating the Effects of Supply and Demand Elasticities on Political-Economic Equilibrium Bullock, David S. AGRICULTURAL PRICE AGRICULTURE CLOSED ECONOMY COMPETITIVE EQUILIBRIUM CONSTANT RETURNS TO SCALE CONSUMER PRICE CONSUMER SURPLUS CONSUMERS COST INCREASES DEMAND CURVE DEMAND ELASTICITY DEMAND FUNCTION ECONOMIC EFFECTS ECONOMIC EQUILIBRIUM ELASTICITY ELASTICITY OF DEMAND ELASTICITY OF SUPPLY EQUILIBRIUM PRICES EXPENDITURES EXPERIMENTAL ECONOMICS EXTERNALITIES FREE TRADE GAME THEORY GOVERNMENT INTERVENTION INCOME INTEREST GROUP MARGINAL BENEFITS MARGINAL COST MARGINAL COSTS MARGINAL VALUE MONOPOLIES NASH EQUILIBRIUM OPPORTUNITY COST POLITICAL ECONOMY POLITICAL POWER PRICE LEVEL PRICE POLICY PRICE SUPPORT PRICE SUPPORTS PRODUCER PRICE SALE SOCIAL COST SOCIAL COSTS SUBSTITUTE SUPPLIERS SUPPLY CURVE SUPPLY ELASTICITY SUPPLY FUNCTION TAX TAX REVENUES TRADE POLICY WELFARE ECONOMICS WORLD POLITICAL ECONOMY Wallace's (1962) pioneering study brought to agricultural economics a focus on the role of supply and demand elasticity's in determining the efficiency with which agricultural policy transfers income among interest groups. His discussion provides key insights into what I call the "consequences of policy" side of current models of political economy. Becker's (1983) and Grossman and Helpman's (1994) models, both famously seminal in the political economy literature, have such "consequences" sides, and therefore when agricultural policy is examined in their models' frameworks, market elasticity's play key roles. These two models have also "causes of policy" sides, which describe interest groups' abilities to create political pressure. Wallace aim is to provide a theoretical review and exposition of the effects of elasticity's on redistribution efficiency, and in turn on distortional policies in political economic equilibrium. He demonstrates how models of actual political economies might be built and used to derive theoretical predictions about how market elasticity's affect policy and income transfers. Applying similar models to examine real world political economies can provide testable hypotheses about how market parameters affect distortional policies. 2017-09-11T14:55:55Z 2017-09-11T14:55:55Z 2008-06 Working Paper http://documents.worldbank.org/curated/en/840971468332983433/Simulating-the-effects-of-supply-and-demand-elasticities-on-political-economic-equilibrium http://hdl.handle.net/10986/28277 English en_US Agricultural Distortions Working Paper;66 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
AGRICULTURAL PRICE AGRICULTURE CLOSED ECONOMY COMPETITIVE EQUILIBRIUM CONSTANT RETURNS TO SCALE CONSUMER PRICE CONSUMER SURPLUS CONSUMERS COST INCREASES DEMAND CURVE DEMAND ELASTICITY DEMAND FUNCTION ECONOMIC EFFECTS ECONOMIC EQUILIBRIUM ELASTICITY ELASTICITY OF DEMAND ELASTICITY OF SUPPLY EQUILIBRIUM PRICES EXPENDITURES EXPERIMENTAL ECONOMICS EXTERNALITIES FREE TRADE GAME THEORY GOVERNMENT INTERVENTION INCOME INTEREST GROUP MARGINAL BENEFITS MARGINAL COST MARGINAL COSTS MARGINAL VALUE MONOPOLIES NASH EQUILIBRIUM OPPORTUNITY COST POLITICAL ECONOMY POLITICAL POWER PRICE LEVEL PRICE POLICY PRICE SUPPORT PRICE SUPPORTS PRODUCER PRICE SALE SOCIAL COST SOCIAL COSTS SUBSTITUTE SUPPLIERS SUPPLY CURVE SUPPLY ELASTICITY SUPPLY FUNCTION TAX TAX REVENUES TRADE POLICY WELFARE ECONOMICS WORLD POLITICAL ECONOMY |
| spellingShingle |
AGRICULTURAL PRICE AGRICULTURE CLOSED ECONOMY COMPETITIVE EQUILIBRIUM CONSTANT RETURNS TO SCALE CONSUMER PRICE CONSUMER SURPLUS CONSUMERS COST INCREASES DEMAND CURVE DEMAND ELASTICITY DEMAND FUNCTION ECONOMIC EFFECTS ECONOMIC EQUILIBRIUM ELASTICITY ELASTICITY OF DEMAND ELASTICITY OF SUPPLY EQUILIBRIUM PRICES EXPENDITURES EXPERIMENTAL ECONOMICS EXTERNALITIES FREE TRADE GAME THEORY GOVERNMENT INTERVENTION INCOME INTEREST GROUP MARGINAL BENEFITS MARGINAL COST MARGINAL COSTS MARGINAL VALUE MONOPOLIES NASH EQUILIBRIUM OPPORTUNITY COST POLITICAL ECONOMY POLITICAL POWER PRICE LEVEL PRICE POLICY PRICE SUPPORT PRICE SUPPORTS PRODUCER PRICE SALE SOCIAL COST SOCIAL COSTS SUBSTITUTE SUPPLIERS SUPPLY CURVE SUPPLY ELASTICITY SUPPLY FUNCTION TAX TAX REVENUES TRADE POLICY WELFARE ECONOMICS WORLD POLITICAL ECONOMY Bullock, David S. Simulating the Effects of Supply and Demand Elasticities on Political-Economic Equilibrium |
| relation |
Agricultural Distortions Working Paper;66 |
| description |
Wallace's (1962) pioneering study
brought to agricultural economics a focus on the role of
supply and demand elasticity's in determining the
efficiency with which agricultural policy transfers income
among interest groups. His discussion provides key insights
into what I call the "consequences of policy" side
of current models of political economy. Becker's (1983)
and Grossman and Helpman's (1994) models, both famously
seminal in the political economy literature, have such
"consequences" sides, and therefore when
agricultural policy is examined in their models'
frameworks, market elasticity's play key roles. These
two models have also "causes of policy" sides,
which describe interest groups' abilities to create
political pressure. Wallace aim is to provide a theoretical
review and exposition of the effects of elasticity's on
redistribution efficiency, and in turn on distortional
policies in political economic equilibrium. He demonstrates
how models of actual political economies might be built and
used to derive theoretical predictions about how market
elasticity's affect policy and income transfers.
Applying similar models to examine real world political
economies can provide testable hypotheses about how market
parameters affect distortional policies. |
| format |
Working Paper |
| author |
Bullock, David S. |
| author_facet |
Bullock, David S. |
| author_sort |
Bullock, David S. |
| title |
Simulating the Effects of Supply and Demand Elasticities on Political-Economic Equilibrium |
| title_short |
Simulating the Effects of Supply and Demand Elasticities on Political-Economic Equilibrium |
| title_full |
Simulating the Effects of Supply and Demand Elasticities on Political-Economic Equilibrium |
| title_fullStr |
Simulating the Effects of Supply and Demand Elasticities on Political-Economic Equilibrium |
| title_full_unstemmed |
Simulating the Effects of Supply and Demand Elasticities on Political-Economic Equilibrium |
| title_sort |
simulating the effects of supply and demand elasticities on political-economic equilibrium |
| publisher |
World Bank, Washington, DC |
| publishDate |
2017 |
| url |
http://documents.worldbank.org/curated/en/840971468332983433/Simulating-the-effects-of-supply-and-demand-elasticities-on-political-economic-equilibrium http://hdl.handle.net/10986/28277 |
| _version_ |
1764466075847622656 |