Social supply and the evaluation of food policies

Abstract

This study develops a model of social supply, based on the hypothesis that society desires that efficient producers remain in business even if their enterprise is too small to withstand the losses caused by extreme price declines. The analysis shows that this concept can be linked to the desire of society of maintaining small producers' income above a minimum level and is consistent with a well-behaved social welfare function. The study further argues that both social demand and social supply functions may be useful for evaluating policies and projects with socially relevant effects