Welfare and incentive effects of possible changes in the regulatory environment of the maize market in Swaziland - Institutional Constraints to Small Farmer Development in Southern Africa - page 134

Table 7.7. Welfare analysis of the maize market system in Swaziland. 1

Variable Label Formulae Price/Value

1998/99 1999/00 2000/01 2001/02 2002/03 2003/04

Parameters:
P d Domestic price for maize 700.00 850.00 750.00 1,276.00 2137 1,200.00

P b Border price for maize 663.31 803.13 665.45 1,225.00 1,623.46 1,030.63

e s Price elasticity of supply 0.151 0.151 0.151 0.151 0.151 0.151

n d Price elasticity of demand -0.513 -0.513 -0.513 -0.513 -0.513 -0.513

NPC Nominal Protection Coeicient P d /P b 1.055 1.058 1.127 1.902 1.202 1.164

T Implicit tarif NPC-1 0.055 0.058 0.127 0.902 0.202 0.164

t' Nominal tarif rate tP b /P d 0.052 0.055 0.113 0.474 0.168 0.141

V' Value of domestic production at domestic

price

P d ×dom. Prod. 75,138,000 91,239,000 80,505,000 250,102,200 209,457,909 128,808,000

W' Value of domestic consumption at

domestic price

P d ×total supply 87,850,000 106,675,000 94,125,000 292,415,000 244,894,425 150,600,000

Analysis:
NEL p 0.5×e s ×t 2 ×V'

Deadweight loss in production 15,586.13 20,944.21 77,239.51 4,246,927.58 446,503.94 193,730.85

0.5×n d ×t' 2 ×W' 61,910.00 NEL c Deadweight loss in consumption 83,192.94 306,804.73 16,869,313.45 1,773,568.01 769,522.54

WG p Change in producer surplus t'V'- NEL p 3,922,865.06 5,009,991.29 8,997,991.79 114,363,455.30 34,749,029.60 17,986,413.94

WG c Change in consumer surplus -(t'W'+NEL c ) -4,666,676.38 -5,965,272.36 -10,917,402.16 -155,546,443 -42,923,553.66 -22,025,421.28

^GR Change in mill revenue t'(W'-V') 666,315.20 851,143.92 1,535,366.13 20,066,746.35 5,954,452.11 3,075,753.95

Loss/capita Loss per capita WG c /total.pop -4.64 -5.81 -10.46 -6.07 -64.02 -20.45

1 Authors' calculations; price in SZL.