CONTENTS
I. Introduction
II. Welfare Measures of the Interest Groups
III. Comparison between Economic Efficiency and Political Feasibility
IV. Sensitivity Analysis
V. Summary and Policy Implications
ABSTRACT
The normative use of the Political preference function may provide useful
insights to policymakers and economists. Particularly, when the government
attaches different weights to producers, consumers and taxpayers, the optimal
choice among alternative policies depends on the particular political (or
welfare) preferences and is an empirical question. Thus, this paper has employed
the implicit political preference function to analyze the trade-off between
economic efficiency and political feasibility among alternative rice policies in
Korea. Specifically, in this paper, we demonstrate the trade-off between
economic efficiency and political feasibility among five alternative policy
instruments.
