Public expenditure proposal for rural areas

Authors

  • Andrés Casco Secretaría de Agricultura y Recursos Hidráulicos
  • José Romero El Colegio de México

DOI:

https://doi.org/10.24201/ee.v12i1.248

Keywords:

public works, program for rural areas, small producers, agriculture

Abstract

This paper proposes both expenditures in public works and for an aggressive educational program for rural areas. It first analyzes the cost benefit of agricultural price supports and concludes that this method of fighting poverty is very expensive; i.e., the benefit obtained for each peso expended in these program is less than 50%, and even lower for small producers. Then the paper analyzed the cost benefit of eliminating those programs and their substitution with a program of direct payments to producers. The benefits of this program are significant, but these benefits are not distributed evenly, and rural workers lose in absolute terms.

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References

Banrural, FIRA, SARH (1992). Análisis de rentabilidad y productividad para siete cultivos, México, FIRA.

Casco, Andrés y Roberto Aceves (1995). "El costo en eficiencia de los sistemas de apoyos vía precio", México, SACAR, Subsecretaría de Planeación (documento interno).

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OECD (1994). Transfer Efficiency of Agricultural Price Support, Paris, Directorate for Food, Agriculture and Fisheries.

Romero, José (1997). Mexican agriculture: Distribution and efficiency effects of eliminating price distortions, México, El Colegio de México, Serie Documentos de Trabajo del CEE, 111/97.

Young, Leslie y José Romero (1994). "A Dynamic Dual Model of the North American Free Trade Agreement", en Joseph F. Francois and Clinton R. Shiells (comps.), Modeling Trade Policy: Applied General Equilibrium Assessments of North American Free Trade, Cambridge, Cambridge University Press

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Published

1997-01-01

How to Cite

Casco, A., & Romero, J. (1997). Public expenditure proposal for rural areas. Estudios Económicos De El Colegio De México, 12(1), 67–90. https://doi.org/10.24201/ee.v12i1.248
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Issue

23-vol. 12, no. 1, january-june, 1997

Section

Articles

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