• Media type: E-Article
  • Title: Simulating the Impacts of Credit Policy and Fertilizer Subsidy on Central Luzon Rice Farms, the Philippines
  • Contributor: Rosegrant, Mark W.; Herdt, Robert W.
  • imprint: Wiley, 1981
  • Published in: American Journal of Agricultural Economics
  • Language: English
  • DOI: 10.2307/1241208
  • ISSN: 0002-9092; 1467-8276
  • Origination:
  • Footnote:
  • Description: <jats:title>Abstract</jats:title><jats:p>The effects of credit policy and fertilizer subsidy on farmers' input choices, production, and income are examined with a multiseason decision‐making model. Stochastic production technology, risk‐neutral and risk‐averse decision rules, short‐term savings/consumption behavior, and a dual financial market are considered. Results indicate the risk‐neutral rule is more consistent with actual choices than risk‐averse rules. Estimated yields increased 21% to 30% from joint credit and fertilizer subsidies. Benefits are greater on irrigated than on rainfed farms. A substantial default rate in the institutional market reduces credit program benefits.</jats:p>
  • Access State: Open Access