Efficiency and Equity in the Producer Levy of India

摘要: India's producer levy scheme has been considered a prime example of government market intervention to depress price incentives for farm producers. Analysis in this study shows that the increases average short run with inelastic supply. In case, significant improvements income distribution can be obtained little loss economic efficiency if is implemented effectively. However, applied long run, it might result instability. More critically, likely have an adverse effect on absence effective implementation.