Some Welfare Implications of the Wheat Subsidy and Trade Policy in Egypt

摘要

The paper examines the subsidy structure of wheat and wheat flour in Egypt and explores the significant economic implications. The institutional framework associated with the distribution and pricing of wheat, wheat flour and bread is described in some detail. These institutional aspects are then incorporated into an analytical model to evaluate the economic efficiency implications of the government's intervention policies in the wheat market. Estimates are made of the subsidies received by the consumers of wheat products and of the welfare costs to the Egyptian economy of the government's policies.