REGULATION IN THE UNITED-STATES RICE INDUSTRY, 1965-89

A partial equilibrium framework is used to estimate the deadweight loss arising from government intervention in the U.S. rice market in order to protect domestic producers. The efficiency of the rice program is compared to other grain programs. Deadweight losses relative to taxpayer and consumer costs from rice programs in recent years were only slightly higher compared to the same measure associated with major commodity programs. The primary source of deadweight losses in rice programs result from set-asides. The potential savings from completely decoupling the rice program are estimated to reach $387 million for 1987. © 1990 American Agricultural Economics Association.