The range of and constraints on policy instruments available to the government when raising and distributing revenue can have important consequences for the efficiency and equity implications of pricing policy. The usual trade-off between equity and efficiency is magnified. We emphasize the...

The goals of the Guaranteed Support Price (GSP) scheme, adopted by several developing countries to support their farmers and the underprivileged population, are threefold: (a) as a supply-side incentive, to ensure high output from the farmers, (b) as a demand-side provisioning tool, to subsidize...