By Christopher D. Gerrard, Greg D. Posehn, Granville Ansong
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Extra info for Agricultural pricing policy in Eastern Africa: a macroeconomic simulation for Kenya, Malawi, Tanzania, and Zambia, Part 76
But these latter policies pale in comparison with the previously mentioned policies in terms of the overall impact on the agricultural sector.
Subsidies are expenditure-using; the government cannot in practice implement an export promotion regime with very much bias at all 12 See Anne Krueger (1980), "The Role of the International Sector in Economic Development," (Minneapolis: National Science Foundation Conference on Economic and Political Development) for a more detailed discussion of the nature and consequences of import-substitution and export-promotion regimes. This paper summarizes an eleven-volume study of foreign trade regimes, edited by Anne Krueger and Jagdish Bhagwati, sponsored by the National Bureau of Economic Research.
In the short term, the rent controls have virtually no impact on the supply of apartments in a given urban center, only on the revenues of apartment owners. The owners of apartments are unable to re-allocate the capital invested in apartments to alternative uses in the short term. But, in the long term, rent controls reduce the incentive for apartment owners to build new apartments and to maintain existing apartments, and therefore rent controls reduce the supply of apartments in the future. Similarly, import-substitution policies have little impact on the supply of agricultural exports in the short term, but they reduce the incentive for farmers to invest in agricultural exports in the long term.
Agricultural pricing policy in Eastern Africa: a macroeconomic simulation for Kenya, Malawi, Tanzania, and Zambia, Part 76 by Christopher D. Gerrard, Greg D. Posehn, Granville Ansong