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The performance of the poultry industry in Indonesia is analyzed in terms of changes in producer and consumer welfare as a result of public policy intended to limit the size of production units in order to distribute growth opportunities to smallet farms. Elasticities of supply and demand are estimated using the seemingly unrelated system of equations. The hypothesis of a policy‐induced structural change, estimated through a dummy variable accounting for a shift in supply associated with implementation of the policy, shows a negative impact on the output supplied and the welfare of producers and consumers to the tune of about Rp 94 billion or roughly about 0.1% of national income as of 1983. The study suggests an important trade‐off between more equitable income distribution and economic efficiency.

Canada and the United States are the world's largest trading partners. The total volume of two-way merchandise trade in 1985 was $165 billion Canadian ($124 billion U.S.). Canadian dependence on U.S. markets has grown to the point that nearly 80% of our exports are destined for our southern neighbor. By the same token, more than 70% of Canada's imports originate in the U.S. That volume represents 20% of total exports from the U.S., the largest proportion going to any individual country. Obviously, trade relations between Canada and the U.S. are very important to both countries. Indeed, given their combined role in total world trade, the importance of trade relations between them goes beyond whatever it might be to those two countries alone.

The welfare costs of deficiency payments for an exported commodity may, under certain conditions, outweigh the gains from trade. The potential welfare impacts of stabilization programs in the hog sector in Quebec are estimated, based on a partial equilibrium framework, and elasticity estimates drawn from other sources. The results indicate that the loss in surplus in Quebec as a result of deficiency payments is very modest at approximately $8.5 million or 1.7% of the value of production. Meanwhile, the net gains from trade remain on the order of $14 million.

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