The Efficiency Analysis on the New Direct Agricultural SubsidyBased on the Factor Allocation Model of Farmers
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Abstract A household behavior model is constructed to explain the mechanism and effect of China’s new agricultural subsidies. The Analysis shows that agricultural production are closely related to the production elements allocation of farmers, and production elements allocation depend on the comparative advantage of agriculture. As a matter of policy in effect, price subsidies has the stable output effect, and output effect of investment subsidies is closely related to agricultural factor prices and farmers non-farm business profit margins. In addition, both investment subsidies and income subsidies have positive income effect. The direct payment pattern of China’s current agricultural subsidies makes the policy focus fall into income category, so it hardly promotes agricultural production. Rational goal of China’s agricultural subsidies should be production-oriented rather than income-oriented and subsidy structure and way should change accordingly.
JIANG Chi-Lin,CHEN Che-Bei. The Efficiency Analysis on the New Direct Agricultural SubsidyBased on the Factor Allocation Model of Farmers. Economic Survey, 2013, 1(1): 022.
2013, Vol. 1 
