Price Subsidy Policy in Brazilian Agriculture:

Peculiarities and Contradictions

Keywords: agricultural subsidies, minimum prices, Austrian School, Brazil

Abstract

The present article aims to indicate the peculiarities and contradictions found in the price subsidy policies in Brazilian agriculture in the last decade. Despite State efforts carried out through the Minimum Prices Guarantee Policy (PGPM, in the original Portuguese), they have not been a good alternative for several producers. The Austrian School interpretation indicates that the information is not available in a homogenous way to economic agents and price interventions regarding the grant of subsidies, it bears unrevealed costs that raise the information asymmetry of the candidates for the minimum price policy, being unable to reach its objective of reducing such market information asymmetry.

Downloads

Download data is not yet available.

Author Biographies

Douglas Paranahyba de Abreu, Federal University of Goiás (UFG)

Economics Professor at Faculdade Araguaia & PhD Candidate in Agribusiness at Federal University of Goiás (UFG)

Adriano de Carvalho Paranaiba, IFG

Economics Professor at Federal Institute of Goiás & Chief Editor at Mises: Interdisciplinary Journal of Philosophy, Law and Economics.

Alcido Elenor Wander, EMBRAPA

Researcher at Brazilian Agricultural Research Corporation (Embrapa) & Professor at Federal University of Goiás (UFG)

References

AKROYD, S.; SMITH, L. Review of Public Spending to Agriculture. A joint DFID/World Bank study. Oxford: Oxford Policy Management. January 2007.

BRAZIL. Law-Decree no. 5212, of January 21. 1943. Available at: . Access: 15 jan 2018.

DELGADO, G. C; CONCEIÇÃO, J. Políticas de preços agrícolas e estoques de alimentos: origens, situação atual e perspectivas. Revista Paranaense de Desenvolvimento, Curitiba, n. 108, p. 25-32, Jan/Jun, 2005.

ELINDER, L. S. Obesity, hunger, and agriculture: the damaging role of subsidies. BMJ: British Medical Journal, London, v. 331, n. 7528, p. 1333, 2005.

FULGINITI, L. E.; PERRIN, R. K. Prices and productivity in agriculture. The review of economics and statistics, Cambridge, p. 471-482, 1993.

HAYEK, F. A. Law, legislation and liberty: The mirage of social justice. Chicago: University of Chicago Press, 1973.

HÜLSMANN, J. G. Ethics of Money Production. Auburm: Ludwig von Mises Institute, 2008.

HÜLSMANN, J. G. A Realist approach to equilibrium analysis. The Quarterly Journal of Austrian Economics, Auburn, v. 3, n. 4, winter, p. 3-51, 2000.

KIRZNER, I. M. Mises e sua compreensão do Sistema Capitalista. MISES: Interdisciplinary Journal of Philosophy, Law and Economics, São Paulo, v.3, n.1, Jan-Jun, p. 133-143, 2015.

KLEIN, P.G.; KLEIN, S.K. Do entrepreneurs make predictable mistakes? Evidence from corporate divestitures. The Quarterly Journal of Austrian Economics, Auburn, v. 4, n.2, summer, p. 3-23, 2001.

MINISTRY OF AGRICULTURE AND LIVESTOCK OF BRAZIL. Agricultural and Livestock Raising Plan 2016-2017. Brasília: MAPA/SPA, 2016.

MISES, Ludwig von. A Critique of Interventionism, Ludwig von Mises Institute, Auburn, [1929] 2011.

MISES, Ludwig von. Interventionism: An Economic Analysis. Atlanta: Foundation for Economic Education, [1940] 1988.

MISES, Ludwig von. [1952] 2008. Profit and Loss. Ludwig von Mises Institute.

MISES, Ludwig von. Certainty and Uncertainty. In: The Ultimate Foundation of Economic Science: An Essay on Method. New York: Foundation for Economic Education, [1962] 2002, p. 62-72.

MISES, Ludwig von. As consequências Psicológicas da Burocratização. MISES: Interdisciplinary Journal of Philosophy, Law and Economics, São Paulo, v. 3, n. 2, Jul.-Dec, p. 537-546, 2015.

RAMOS, S. Y.; MORCELI, P. Análise do desempenho dos instrumentos da política de garantia de preços mínimos: o caso da cadeia produtiva do arroz. In: CONGRESSO SOCIEDADE BRASILEIRA DE ECONOMIA, ADMINISTRAÇÃO E SOCIOLOGIA RURAL, 48., 2010, Campo Grande, MS. Available at: . Access in: 10 Jan 2017.

RAUSSER, G.; DE GORTER, H. US policy contributions to agricultural commodity price fluctuations, 2006, p. 12. IN: Food Price Policy in an Era of Market Instability: A Political Economy Analysis, WIDER Studies in Development Economics, p. 433-456, 2014.

ROTHBARD, M. N. Man, Economy, and State. 2.ed. Auburn: Ludwig von Mises Institute, [1962] 2009.

SCHWANTES, F.; BACHA, C. J. C. Custos Sociais e Orçamentários das Políticas de Garantia de Preços no Brasil - estudo dos casos de arroz e milho. Revista de Economia e Sociologia Rural, Brasília, v. 55, n. 2, p. 367–388, 2017.
Published
2018-11-02
How to Cite
Abreu, D., Paranaiba, A., & Wander, A. (2018). Price Subsidy Policy in Brazilian Agriculture:. MISES: Interdisciplinary Journal of Philosophy, Law and Economics. https://doi.org/10.30800/mises.2018.v0.629
Section
Special Issue 2018