Subsidy Incidence in the Presence of Bertrand Suppliers of Complementary Inputs: A U.S. Agricultural Example

2019 ◽  
Vol 20 (3) ◽  
pp. 479-501
Author(s):  
Abby Kelly ◽  
Kalyn T. Coatney ◽  
Xiaofei Li ◽  
Keith H. Coble
Keyword(s):  
Subsidy Incidence ◽  
Complementary Inputs

Optimal Adoption of Complementary Technologies

2000 ◽  
Vol 90 (1) ◽  
pp. 15-29 ◽  
Author(s):  
Boyan Jovanovic ◽  
Dmitriy Stolyarov
Keyword(s):  
Production Process ◽  
Decision Maker ◽  
Conventional Wisdom ◽  
Fixed Cost ◽  
Spare Capacity ◽  
Equipment Investment ◽  
Complementary Inputs

When a production process requires two extremely complementary inputs, conventional wisdom holds that a firm would always upgrade them simultaneously. We show, however, that if upgrading each input involves a fixed cost, the firm may upgrade them at different dates, “asynchronously.” This insight helps us understand why productivity rises with the age of a plant, why investment in structures is more spiked than equipment investment, and why plants have spare capacity. The bigger point of the paper is that complementarity does not necessarily imply comovement—not even for a single decision maker. (JEL E22, O31, P11)

Complementary inputs and market power

1986 ◽  
Vol 31 (1) ◽  
pp. 51-90
Author(s):  
Lindsay Bower
Keyword(s):  
Market Power ◽  
Complementary Inputs

scholarly journals Making the Grade: The Sensitivity of Education Program Effectiveness to Input Choices and Outcome Measures

2020 ◽  
pp. 1-45 ◽  
Author(s):  
Jason T. Kerwin ◽  
Rebecca L. Thornton
Keyword(s):  
Outcome Measures ◽  
Education Program ◽  
Program Effectiveness ◽  
Mother Tongue ◽  
Reading Scores ◽  
Negative Effects ◽  
Education Production ◽  
Randomized Evaluation ◽  
Complementary Inputs ◽  
Writing Scores

This paper demonstrates the acute sensitivity of education program effectiveness to the choices of inputs and outcome measures, using a randomized evaluation of a mother-tongue literacy program. The program raises reading scores by 0.64SDs and writing scores by 0.45SDs. A reduced-cost version instead yields statistically-insignificant reading gains and some large negative effects (-0.33SDs) on advanced writing. We combine a conceptual model of education production with detailed classroom observations to examine the mechanisms driving the results; we show they could be driven by the program initially lowering productivity before raising it, and potentially by missing complementary inputs in the reduced-cost version.

Local complementary inputs as drivers of entry mode choices: The case of US investments in Brazil

2015 ◽  
Vol 24 (3) ◽  
pp. 466-475 ◽  
Author(s):  
Jean-François Hennart ◽  
Hsia Hua Sheng ◽  
Gustavo Pimenta
Keyword(s):  
Entry Mode ◽  
Complementary Inputs

Fertilizer industry subsidies in China: who are the beneficiaries?

2014 ◽  
Vol 6 (3) ◽  
pp. 433-451 ◽  
Author(s):  
Sheng Li ◽  
Yaoqi Zhang ◽  
Denis Nadolnyak ◽  
John David Wesley ◽  
Yifei Zhang
Keyword(s):  
Target Groups ◽  
Allocation Pattern ◽  
Content Type ◽  
Equilibrium Displacement Model ◽  
Fertilizer Industry ◽  
Total Surplus ◽  
Equilibrium Displacement ◽  
Multi Stage ◽  
Subsidy Incidence ◽  
Displacement Model

Purpose – Since 2004, subsidies increased by 670 percent in the Chinese fertilizer industry to reduce the farmer's burden. The purpose of this paper is to assess whether subsidies benefit the target groups, the fertilizer subsidy distribution pattern and benefit allocation pattern among fertilizer producers and other sectors were investigated. Design/methodology/approach – The Muth model is extended to evaluate the impacts of a subsidy on multi-stage markets. Findings – It is found that the total benefits from the policy are about RMB 7.7 billion yuans. The fertilizer suppliers gain about RMB 51 billion yuans from the favorable policy with mean subsidy incidence 0.8 and capturing about 70 percent of total surplus. Social implications – The results suggest that transferring parts of subsidies to the non-fertilizer sectors could be considered an efficient way to redistribute welfare indifferent sectors. Originality/value – This study first use the equilibrium displacement model to quantity the distribution of fertilizer subsidy in a vertical market in China.

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