The Importance of Substitution

  • John Strak
Part of the Trade Policy Research Centre book series (TPRC)


The objectives of this study were discussed earlier. At this point it is sufficient briefly to reaffirm the interest of this analysis in the measurement of agricultural levels of protection, in general, and with the rate of protection given to the different livestock production activities of British agriculture, in particular. It is hoped that such a measurement exercise will provide an indication of the possible effects on resource allocation that this agricultural policy action may have had over time. Amongst the measures estimated was the ERP and, from the calculated Effective Rates for different enterprises, a Relative Scale of Protection was constructed. Since a particular characteristic of Effective Rates is that they can be shown to be directly linked with the concept of the margin or value-added associated with a production activity, the Relative Scale would apparently be of use to economists whose prime concern is assessing the productive effects of protection. The Effective Rate was also seen to be able to involve several types of policy instrument in its calculation and hence produce an estimate of the net amount of protection of the primary factors associated with a specific value-adding process.


Effective Rate Effective Protection Relative Scale Livestock Sector Substitution Elasticity 
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Notes and References

  1. 5.
    Christopher Mackel, ‘The Development Role and Effects of Green Money in a Period of Economic Instability’, Bulletin No. 13, North of Scotland College of Agriculture (NOSCA), May 1977.Google Scholar
  2. 6.
    William P. Travis, “The Effective Rate of Protection and the Question of Labor Protection in the U.S.’, Journal of Political Economy, Vol. 76, 1968Google Scholar
  3. 9.
    Hans P. Binswanger, ‘A Cost Function Approach to the Measurement of Elasticities of Factor Demand and Elasticities of Substitution’, American Journal of Agricultural Economics, May 1973.Google Scholar
  4. 11.
    J. Martin Currie, John A. Murphy and Andrew S. Schmitz, ‘The Concept of Economic Surplus and its Use in Economic Analysis’, The Economic Journal, Vol. 81, 1971.Google Scholar
  5. 12.
    S. T. Parsons, ‘A Note Concerning the Contribution of Primary Inputs to Agricultural Outputs’, Journal of Agricultural Economics, Vol. XXXI, No. 1, 1980.Google Scholar

Copyright information

© John Strak and the Trade Policy Research Centre 1982

Authors and Affiliations

  • John Strak

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