IS A BEEF DEFICIENCY PAYMENT PARETO-SUPERIOR IN SOUTH KOREA?

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South Korea uses a quota and a tariff on beef imports to keep farm prices high. Part of the quota rents are used to support indirect benefits to producers. The welfare costs of these policies are analyzed. Following a suggestion of Hayami, a deficiency payment financed by tariff revenues from increased imports is considered as an alternative to the quota. As Anderson (1983) found for Japan, a deficiency payment is Pareto-superior only if indirect benefits from the quota revenue are ignored.

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http://hdl.handle.net/123456789/547789

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https://ageconsearch.umn.edu/record/32622/files/16010106.pdf

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University of Minnesota