The Impact of Direct Payment Program on Rice Farmers’ Production Decision in Taiwan
Date Issued
2000-07-31
Date
2000-07-31
Author(s)
DOI
892415H002025
Abstract
Our government has employed the price
support program to the domestic rice industry
for more than two decades. After twenty-year
policy enforcement, we have the surplus and
budget deficit problems. Furthermore, the
price support program is also listed in the
improper policy scheme of WTO. Due to the
reasons stated above, the government are
planing to apply the direct payment scheme
in the rice industry in the future.
Currently, most articles related to the
direct payment policies are still on the stage
of literature reviews. The purpose of this
research is to find a direct payment scheme
that is both theoretical and empirical feasible
on Taiwanese rice industry. The principal–
agent theory and the method of analysis of
variances are applied in this study to examine
the feasibility of the direct payment based on
land grades. The results show that this policy
scheme is unable to distinguish the types of
farmers, therefore, it is not feasible. A
revised policy scheme is proposed in this
research . to fulfill the goal of structure
change of the rice industry in Taiwan.
Subjects
Asymmetric Information
Land
Productivity
Productivity
Direct Payment Based on Land
Grade
Grade
Direct Payment to Land
Second Best
Contract.
Contract.
Publisher
臺北市：國立臺灣大學農業經濟學系暨研究所
Type
journal article
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