Alternative Agricultural Pricing Policies in the Republic of Korea: Their Implications for Government Deficits, Income Distribution, and Balance of Payments

摘要

The purpose of this paper is to evaluate quantitatively the impact of alternative pricing policies, aimed at reducing the deficits in the Grain (mainly rice and barley) Management Fund (GMF), and the Fertilizer Fund (FF) in Korea. In comparing these alternatives, a measure of their impact is made for (1) production and consumption of rice and barley, (2) real income distribution, including the income distribution in both and rural and the urban sectors, (3) import levels of rice, (4) self-sufficiency in rice and (5) the public budget. The standard operational methods for evaluating agricultural pricing policies, namely domestic resource cost (DRC) and effective protection rate (EPR) calculations and consumer-producer surplus calculations are insufficient for adequately answering all the questions posed above. An operational methodology is developed. (Copyright (c) The World Bank, 1983.)