THE COST OF THE U.S. SUGAR PROGRAM REVISITED
The article analyzes the welfare cost of the U.S. sugar program using a multimarket model of U.S. sweetener markets. The latter includes raw crops, sugar extraction and refining, and sweetener users (food-processing industries and final consumers). The authors address the industrial organization of food industries using sweeteners and treat the United States as a large importer. With the removal of the program, this article estimates (all figures in 1999 dollars) that in 1998 cane growers, sugar beet growers, and processors would have lost $307, $650, and $89 million, respectively; sweetener users would have gained $1.9 billion. World prices would have increased by 13.2%. The deadweight loss of the program is estimated at $532 million. Copyright 2003 Western Economic Association International.
Year of publication: |
2003
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Authors: | Beghin, John C. ; Osta, Barbara El ; Cherlow, Jay R. ; Mohanty, Samarendu |
Published in: |
Contemporary Economic Policy. - Western Economic Association International - WEAI, ISSN 1074-3529. - Vol. 21.2003, 1, p. 106-116
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Publisher: |
Western Economic Association International - WEAI |
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