Government Interventions to Promote Agricultural Innovation

Akkaya, Duygu; Bimpikis, Kostas; Lee, Hau L.

doi:10.1287/msom.2019.0834

Cited by 34 publications

(37 citation statements)

References 25 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…More recently, Akkaya et al. (2021) examine the role of governmental support policies in farmers' adoption of innovative production methods in agriculture.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Recently, Guda et al (2021) and Ramaswami et al (2018) examine the role of procurementbased MSPs in emerging economies by considering homogeneous production costs while Chintapalli and Tang (2020) examine the impact of credit-based MSPs in the presence of market and yield uncertainties and when farmers are riskaverse and possess heterogeneous production costs. More recently, Akkaya et al (2021) examine the role of governmental support policies in farmers' adoption of innovative production methods in agriculture.…”

Section: Production and Operations Managementmentioning

confidence: 99%

See 1 more Smart Citation

Crop minimum support price versus cost subsidy: Farmer and consumer welfare

Chintapalli

Tang

2022

Production and Operations Management

View full text Add to dashboard Cite

Besides using earmark budget to support farmer cost subsidies, governments in many developing countries use minimum support price (MSP) as an alternative subsidy scheme to (i) safeguard farmers' incomes against vagaries in crop price and (ii) ensure sufficient crop production. Among different MSP schemes, we focus on the creditbased MSP scheme under which a government will not take any possession of a crop; instead, it will credit farmers if the prevailing market price is below the prespecified MSP. In this paper, we consider a market consisting of infinitesimally small, rational, and strategic farmers (with heterogeneous production costs) who face market and yield uncertainties. Our equilibrium analysis reveals that (i) although both cost subsidy and MSP induce more production, cost subsidy leads to a higher crop production than MSP; (ii) MSP improves farmer's and consumer's surpluses; however, cost subsidy improves consumer's surplus but it can decrease farmer's surplus, which is unexpected; (iii) although both programs achieve the same optimal net value (i.e., sum of farmer's and consumer's surpluses minus shortage cost and expenditure), MSP always offers higher farmer's surplus than cost subsidy; and (iv) it is beneficial to invest only in cost subsidy, in both cost subsidy and MSP, and only in MSP, when the budget availability is low, moderate, and high, respectively, so that the net surplus (i.e., sum of farmer's and consumer's surpluses less the shortage cost) is also maximized along with the net value generated being maximized. K E Y W O R D Sagricultural supply chains, cost subsidies, emerging economies, government and public policy, hybrid policies, minimum support prices (MSPs)

show abstract

“…More recently, Akkaya et al. (2021) examine the role of governmental support policies in farmers' adoption of innovative production methods in agriculture.…”

Section: Literature Reviewmentioning

confidence: 99%

Section: Production and Operations Managementmentioning

confidence: 99%

Crop minimum support price versus cost subsidy: Farmer and consumer welfare

Chintapalli

Tang

2022

Production and Operations Management

View full text Add to dashboard Cite

show abstract

“…Akkaya et al. (2020) study the impact of government intervention instruments on the adoption of agriculture innovations: (a) subsidies to alleviate the investment‐cost burden farmers have to bear for farming innovation and (b) tax levies on resources required by conventional farming. They demonstrate that different policy interventions affect different metrics (e.g., environmental impact, social welfare, and consumer welfare) differently, and thus, the effectiveness of a government intervention type is determined by the policy's objective.…”

Section: Literature Review and Research Opportunitiesmentioning

confidence: 99%

Toward Resilient Agriculture Value Chains: Challenges and Opportunities

Dong

2021

Production and Operations Management

View full text Add to dashboard Cite

A griculture value chains are going through a paradigm shift, from efficiency-driven industrial agriculture to resilience-focused eco-friendly agriculture. The nature of the paradigm shift is, to a certain extent, similar to the transformation taking place in many other industries (Lee 2014); its impact on the environment is, however, far-reaching. This study intends to raise awareness of the challenges and trends in agriculture value chains and explores research opportunities through which operations and supply chain researchers can participate and contribute to the paradigm shift.

show abstract

“…More scholars only pay attention to the influence of government subsidies on the innovation and production of agricultural enterprises [23,24]. Akkaya et al paid attention to the impact of taxes and subsidies on agricultural profits and social welfare [25]. Compared to the previous studies, this paper focuses on the influence mechanism of government innovation support on R&D input.…”

Section: A Government Innovation Support and Enterprise Randd Inputmentioning

confidence: 99%