scholarly journals Welfare Effect of Adaptation Policy for Rice Price Variation under Climate Change in Bangladesh

2021 ◽  
pp. 26-40
Author(s):  
M. A. Salam ◽  
Jun Furuya ◽  
Shintaro Kobayashi
Keyword(s):  
Social Welfare ◽  
Consumer Surplus ◽  
Price Policy ◽  
Welfare Effect ◽  
Adaptation Policy ◽  
Price Variation ◽  
Total Surplus ◽  
Rice Price ◽  
Producer Surplus ◽  
Support Price

This study was designed to evaluate the welfare effect of the climate adaptation policy for rice price variation in terms of producer surplus, consumer surplus, and net change in social welfare in Bangladesh, using the partial equilibrium model of the adaptation policy. The long-term trend of climate and policy adaptation for climate impact on price variation of the rice in Bangladesh is taken into economic model approach. The base period of this research is 1977-2009 and the extrapolation period is 2010-2030. To execute the designed analysis, the time series data from national and international organization are used. The results for the support price policy show that the total surplus that producers receive is equivalent to USD 1,164 million, substantially higher than the consumer surplus (USD 763 million) during the period 2010–2030. The net change in the social welfare owing to the support price policy is equivalent to –1483 million (USD) during the period 2010–2030. Moreover, analysis of the subsidized price policy shows that the total surplus that consumers receive (USD 1,958 million) is relatively higher than the producer surplus (USD 1,738 million) in the same period. The net change in social welfare owing to the subsidized price policy (–197 million USD) is much higher than that owing to price support –1483 million (USD). Implementing the dual price policy would result in a much higher net change in the society’s welfare (–1185 million USD) compared to that possible through each policy separately. In conclusion, these adaptation and price stabilization policies are recognized to be more useful in mitigating the severe price rise and fall in the future food market, in favour of both producers and consumers. Even though the change in net social welfare is higher, the higher cost of policy budget is imperative to make stable food supply and security.

PP170 Quantifying the Life-Cycle Value of Second Generation Antipsychotics

2019 ◽  
Vol 35 (S1) ◽  
pp. 69-69
Author(s):  
Mikel Berdud ◽  
Niklas Wallin-Bernhardsson ◽  
Bernarda Zamora ◽  
Peter Lindgren ◽  
Adrian Towse
Keyword(s):  
Life Cycle ◽  
Cost Effectiveness ◽  
Consumer Surplus ◽  
Value Added ◽  
Dynamic Nature ◽  
Patent Expiration ◽  
Total Surplus ◽  
Long Run ◽  
Second Generation Antipsychotics ◽  
Producer Surplus

IntroductionWe estimate the life-cycle value of risperidone – Second-Generation Antipsychotics (SGA) – to balance the view that cost per Quality-Adjusted Life Year (QALY) estimates at launch are enough to guide access decisions. Study results will also drive discussion on access and price to recognize the dynamic nature of pharmaceutical pricing over the long-run.MethodsWe estimated number of patients treated for schizophrenia with risperidone in Sweden and the United Kingdom (UK) between 1994-2017 based on usage data form national statistics and volume sales data from IQVIA. We collected data from literature on the effectiveness (QALYs) and costs (EUR 2017) of risperidone (SGA) and haloperidol – First-Generation antipsychotic (FGA). We estimate the life-cycle value added by risperidone versus haloperidol, and the life-cycle distribution of the social surplus between the payer (consumer surplus) and the innovator (producer surplus).ResultsWe estimated the consumer surplus, the producer surplus, the Net Monetary Benefit (NMB) and Incremental Cost-Effectiveness Ratio (ICER) at each year and in aggregate terms (1993-2017). For the UK the producer surplus was ~28 percent out of the total surplus before patent expiration and five percent after patent expiration. In Sweden, producer surplus was around 6 percent out of the total surplus before patent expiration and one percent thereafter. In both countries, during the life-cycle of risperidone, the NMB per patient increased and the ICER decreased as a response to: (i) the launch of Risperidone Long-Acting Injectable (RLAI); and (ii) the generic entry.ConclusionsThe value added by risperidone increased during the life-cycle due to the launch of RLAI and the generic competition. This suggests that, considering the entire life-cycle, the value added by SGAs to the system is higher than the expected value estimated using cost-effectiveness analysis at launch. Pricing and reimbursement decisions should take into account the dynamic nature of pharmaceutical markets and the value added by innovative medicines over the long-run.

scholarly journals Pengaruh globalisasi terhadap ketahanan pangan nasional

Agro Ekonomi ◽  
2016 ◽  
Vol 10 (1) ◽  
pp. 1
Author(s):  
Sri Widodo
Keyword(s):  
International Trade ◽  
Food Security ◽  
Social Welfare ◽  
Trade Policy ◽  
Consumer Surplus ◽  
Price Policy ◽  
Domestic Price ◽  
International Trade Policy ◽  
Long Run ◽  
The Impact

The problem on food security in Indonesia began to be interested since the economic crisis as one component of the social security net. Sustainable food security covers: availability of food, accessibility, utilization, stability, self reliance (autonomy) and sustainability. . Hirarchically food security can be at global order, regional, national, local, household and individual. The higher order offbod security is a necessary condition but not sufficient condition for the lower order.Economic theory indicate that there are gains to be made from free trade. increase the efficiency ufresource allocation, and increase welfare of all countries. However, all government, without exception, intervene to varying degrees in the working of natural market prces, with the reason the need to protect infant industry, to ensure food security, to redistribute income, and to enhance income of small producers.The liberalization initiatives culminated in UR agreement and WTO, among others, dismantling of quantitative restriction and subsidies as well as other nontariff barriers, but there were several new thing of antidumping tariff, sanitary and phytosanitary, technical barrier to trade,environment, and genetically modified organism.The impact of trade liberalization on exporter countries, in general, would benefit the producers, decrease the consumer surplus, and increase social welfare except large populated as India and China. The impact of importer countries depend on the policy of each country. Malaysia and Indonesia by decreasing import tariff policy would increase consumer surplus and social welfare but sacrificing the producers/farmers.National food policies consist of international trade policy domestic price policy, and policy on production efficiency. The international trade policy means to protect producers, consumers, and social welfare from the uncertainty of international market especially in the long run. The stabilization of domestic price policy needs inter department coordination and STE to implement. Protection could result inefficiency but it is needed for commodities those are not ready to compete and to protect from unfair trade, to protect farmers and long run food security.

scholarly journals Externalities and Regulation in Card Payment Systems

2006 ◽  
Vol 5 (1) ◽  
Author(s):  
Jean-Charles Rochet ◽  
Jean Tirole
Keyword(s):  
Social Welfare ◽  
Consumer Surplus ◽  
Welfare Analysis ◽  
Payment Systems ◽  
Interchange Fees ◽  
Regulatory Approach ◽  
Innovative Thinking ◽  
Card Payment ◽  
Economic Thinking

The paper offers a roadmap to the current economic thinking concerning interchange fees. After describing the fundamental externalities inherent in payment systems and analysing merchant resistance to interchange fee increases and the associations' determination of this fee, it derives the externalities' implications for welfare analysis. It then discusses whether consumer surplus or social welfare is the proper benchmark for regulatory purposes. Finally, it offers a critique of the current regulatory approach, and concludes with a call for more novel and innovative thinking about how to reconcile regulators' concerns and the industry legitimate desire to perform its balancing act.

scholarly journals Effects of Serbian accession to the European Union

2012 ◽  
Vol 59 (3) ◽  
pp. 355-367 ◽  
Author(s):  
Mario Holzner ◽  
Valentina Ivanic
Keyword(s):  
Trade Liberalization ◽  
Consumer Surplus ◽  
The European Union ◽  
Policy Changes ◽  
Eu Accession ◽  
Consumer Prices ◽  
The World ◽  
Producer Surplus ◽  
The One ◽  
The Eu

In this article, the global simulation model (GSIM) of Joseph F. Francois and Keith H. Hall (2009) for analyzing global, regional, and unilateral trade policy changes was applied to Serbia. This was to measure the effects of full trade liberalization with the EU after Serbian accession to the EU. As anticipated, most of the changes in welfare after full liberalization of trade between Serbia and EU can be expected in sectors where Serbia has specialized; protection against imports from the EU is strong. However, losses could also occur in sectors that currently face strong protection against the rest of the world and this protection is lost after EU accession. Trade liberalization will lead to a substantial loss of tariff revenues. Reduced consumer prices might, on the one hand increase consumer surplus but on the other hand decrease producer surplus and output in certain industries.

scholarly journals The Walfare of Local Farmers, Rice Price Policy, and Distribution Process in Improving Food

2018 ◽  
Vol 1 (2) ◽  
Author(s):  
Nuzul Rahayu Nita
Keyword(s):  
Food Security ◽  
Price Policy ◽  
Adequate Food ◽  
Rice Price ◽  
Distribution Process ◽  
Food Economy ◽  
Method Approach ◽  
Descriptive Method ◽  
Economy System ◽  
Local Farmers

Food security is an integrated food economy system consisting of various subsystems (Suryana, 2003). Food security contains at least two basic elements, namely the availability of adequate food and the accessibility of the community to adequate food, where both elements are absolutely fulfilled in order to achieve the health and welfare of society. This paper presents a review of grain price policy and distribution access in analyzing the welfare of local farmers and their impact on food security in Tanggulangin, Indonesia. This research uses descriptive method approach. Using interview with source from food security departement. The results of the analysis indicate that the food welfare factors do not have a significant effect on food security in the surplus food sub-district. While access factor and also policy of food price policy give significant influence to food security and welfare of farmers in subdistrict with surplus of food in 2014. The result of this study are important to see the developtment food security in surplus food security areas.

Endogenous Timing in Vertically-Related Markets

2018 ◽  
Vol 18 (2) ◽  
Author(s):  
Hong-Ren Din ◽  
Chia-Hung Sun
Keyword(s):  
Social Welfare ◽  
Price Competition ◽  
Consumer Surplus ◽  
The Other ◽  
Endogenous Timing ◽  
Price Strategy ◽  
Quantity Competition ◽  
Sequential Game ◽  
Product Substitutability

Abstract This paper investigates the theory of endogenous timing by taking into account a vertically-related market where an integrated firm competes with a downstream firm. Contrary to the standard results in the literature, we find that both firms play a sequential game in quantity competition and play a simultaneous game in price competition. Under mixed quantity-price competition, the firm choosing a price strategy moves first and the other firm choosing a quantity strategy moves later in equilibrium. Given that the timing of choosing actions is determined endogenously, aggregate profit (consumer surplus) is higher (lower) under price competition than under quantity competition. Lastly, social welfare is higher under quantity competition than under price competition when the degree of product substitutability is relatively low.

The Sustainable Forestry Initiative’s impact on stumpage markets in the US South

2005 ◽  
Vol 35 (8) ◽  
pp. 2056-2064 ◽  
Author(s):  
Roger Brown ◽  
Daowei Zhang
Keyword(s):  
Consumer Surplus ◽  
Sustainable Forestry ◽  
Consumer Welfare ◽  
Us South ◽  
Equilibrium Displacement Model ◽  
Equilibrium Displacement ◽  
The Us ◽  
Producer Surplus ◽  
Nonindustrial Private Forest ◽  
Displacement Model

Using survey data and an equilibrium displacement model, we estimate the market and economic impacts of the American Forest and Paper Association's Sustainable Forestry Initiative (SFI) on stumpage markets in the US South. We examine four timber product markets: softwood pulpwood, softwood sawtimber, hardwood pulpwood, and hardwood sawtimber. In each market we calculate changes in producer and consumer welfare using the equilibrium displacement model that accounts for reductions in timber inventories caused by SFI compliance. We find that SFI compliance costs the US South's economy about $36 million annually. SFI-compliant stumpage producers lose more than $33 million each year in producer surplus as a result of SFI compliance, and consumers lose about $12 million annually in consumer surplus due to higher product prices. These costs are offset partially by benefits to nonindustrial private forest producers, non-SFI-compliant industry producers, and public forest producers, who collectively gain about $10 million in producer surplus annually as a result of higher stumpage prices.

A Model of Queue Scalping

2021 ◽  
Author(s):  
Luyi Yang ◽  
Zhongbin Wang ◽  
Shiliang Cui
Keyword(s):  
Social Welfare ◽  
Service Provider ◽  
Operations Management ◽  
Consumer Surplus ◽  
System Throughput ◽  
Theoretic Model ◽  
Material Interest ◽  
Long Run ◽  
Short Run ◽  
Primary Service

Recent years have witnessed the rise of queue scalping in congestion-prone service systems. A queue scalper has no material interest in the primary service but proactively enters the queue in hopes of selling his spot later. This paper develops a queueing-game-theoretic model of queue scalping and generates the following insights. First, we find that queues with either a very small or very large demand volume may be immune to scalping, whereas queues with a nonextreme demand volume may attract the most scalpers. Second, in the short run, when capacity is fixed, the presence of queue scalping often increases social welfare and can increase or reduce system throughput, but it tends to reduce consumer surplus. Third, in the long run, the presence of queue scalping motivates a welfare-maximizing service provider to adjust capacity using a “pull-to-center” rule, increasing (respectively, reducing) capacity if the original capacity level is low (respectively, high). When the service provider responds by expanding capacity, the presence of queue scalping can increase social welfare, system throughput, and even consumer surplus in the long run, reversing its short-run detrimental effect on customers. Despite these potential benefits, such capacity expansion does little to mitigate scalping and may only generate more scalpers in the queue. Finally, we compare and contrast queue scalping with other common mechanisms in practice—namely, (centralized) pay-for-priority, line sitting, and callbacks. This paper was accepted by Victor Martínez de Albéniz, operations management.

STORE PROMOTION, MANUFACTURER COMPETITION AND WELFARE

2021 ◽  
pp. 1-18
Author(s):  
HAO WANG ◽  
XUNDONG YIN ◽  
ALICE Y. OUYANG
Keyword(s):  
Social Welfare ◽  
Consumer Preferences ◽  
Consumer Surplus ◽  
Weighted Average ◽  
Brand Name ◽  
Price Distortion ◽  
Online Platforms ◽  
Brand Competition ◽  
The Social ◽  
Partial Exclusion

This study evaluates the partial exclusion effects of store promotion. We find that a manufacturer with a better brand name has a higher willingness-to-pay for promotion services offered by retail stores or online platforms. The promotion results in higher sales-weighted average prices (wholesale and retail) and a larger inter-brand price gap. The stores or platforms extract more profits from manufacturers and consumers through the promotion services. The effects on consumer surplus and social welfare depend on whether the promotion alters consumer preferences. If it does, more consumers would be choosing their less-preferred brands because of the larger inter-brand price gap, which would be socially inefficient. If it does not, the promotion may help to correct the price distortion, but the social welfare effect is positive only when the promotion effect is small enough. In both cases, the promotion services reduce the total consumer surplus by softening inter-brand competition.

SPATIAL ANALYSIS OF PADDY RICE PRICE VARIABILITY IN DASS AND TAFAWA BALEWA LGAS OF BAUCHI STATE, NIGERIA

2021 ◽  
pp. 31-42
Keyword(s):  
Spatial Analysis ◽  
Spatial Variation ◽  
Paddy Rice ◽  
T Test ◽  
Price Transmission ◽  
Capital Outlay ◽  
Price Variation ◽  
Price Variability ◽  
Rural Markets ◽  
Rice Price

The study was conducted on the spatial analysis of paddy rice (Oryza sativa) price variability in Dass and Tafawa Balewa LGAs of Bauchi State, Nigeria. Data were collected using questionnaires administered to 120 respondents sampled through random sampling technique. Secondary data were also collected from BSADP Bauchi on monthly prices of paddy rice. Data were analyzed using descriptive statistics (mean, frequency, ranking and likert scale), pearson product correlation, T-test and ratio to moving average model. It was revealed that the leading causes of spatial rice price variability were spatial variation in supply, high cost of transportation and inadequate market information. There was existence of price integration or perfect price transmission between and among the urban and rural markets during the period of study. The magnitude of paddy rice price variability in the rural markets were higher, and the t-test shows that there was a significant (P < 0.05) difference in price of paddy rice between rural and urban markets. Spatial variation in supply, bad road condition, seasonal variation in supply, inadequate contact with extension agents and low capital outlay were the major constraints militating against paddy rice marketing in the study area. Therefore, it is recommended that Rural feeder roads should be constructed by government, NGOs or individuals to enable easy movement of produce as well as all year round production/supply of rice should be encouraged through provision of fund and inputs by relevant stakeholders to farmers for dry season farming in order to curtail the problem of price variation due to seasonality in production.

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