Volume 13, Issue 4 (2014)                   QJER 2014, 13(4): 127-146 | Back to browse issues page

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Mortazavi S A, Abbasmiri S S, A’laei Borujeni P. Effects of Pricing Policy on Colza Production in Iran. QJER 2014; 13 (4) :127-146
URL: http://ecor.modares.ac.ir/article-18-3246-en.html
1- Assistant Professor of Agricultural Economics, Tarbiat Modares University, (Corresponding Author, Email: samortazavi@modares.ac.ir)
2- M. A. Student of Agricultural Economics, Tarbiat Modares University
3- PhD Student of Agricultural Economics, Tarbiat Modares University
Abstract:   (8853 Views)
To investigate the effects of pricing policies in the production of Colza, first, we estimate demand function for inputs of Colza oil production by applying the Almost Ideal ‎Supply System (AISS) and supply ‎function for Colza by applying the Koyck model in Iran during 1989-2009. Then, using the calculated supply and demand elasticities, we compute equilibrium price and ‎quantity for 2008 in the absence of government intervention and‎ compare them with current situation. Finally, we evaluate the effects of floor price policy on the ‎producer surplus for Colza in 2008. The results show that price elasticities ‎of supply of and demands for Colza are greater and less than one, respectively. In addition, the performance of pricing ‎policy is not too effective, since floor price is slightly higher than the equilibrium price. Thus, it is recommended that floor price is determined at a level upper than equilibrium price.
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Received: 2011/10/12 | Accepted: 2012/10/3 | Published: 2014/01/11

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