Date of Award

7-1-1985

Degree Type

Thesis

University or Center

Atlanta University (AU)

Degree Name

M.A.

Department

Economics

First Advisor

Dr. Fred Boadu

Abstract

This thesis was concerned with a quantification of the effects of a government intervention in the pricing of wheat in the United States. First, standard partial equilibrium comparative static analysis in the Marshallian economic surplus framwork-welfare theory-was used to calculate the net social loss in consumption, net social loss in production, welfare gain of producers, and welfare gain of consumers. Second, a Marshallian demand function-theory of consumer behaviorwas employed through the use of ordinary least squares techniques to estimate the parameters in the aforementioned welfare theory. Lastly, partial equilibrium market model-a linear model of price determination in an isolated market-was used to show the diagrammatic effects of equilibrium price.

It was found in this study that government intervention in the pricing of wheat has a negative rate of protection on the domestic consumption of wheat, i.e., the quantity of wheat consumed in this country is substantial less than what it wou!d have been in the absence of price distortions.

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Economics Commons

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