Precio sostén o subsidio al fertilizante: beneficios y costos

Abstract

This paper measures the benefits and costs associated with two alternative policies: a price support for wheat and corn or a fertilizer subsidy. Fertilizer is being used -by assumption- below its optimal level and price incentives are necessary to achieve an increase in production. The potential fertilizer demand is derived from wheat and corn production functions. Using a competitive equilibrium model, the benefits and costs of the two price programs are compared.