Import substitution in agriculture: overproduction crises, choice of institutional policy, application of behavioural economics

Issue № 1, 2018, article № 2, pages 11-21

Section: Agrarian policy: problems and decisions

Language: Russian

Original language title: ИМПОРТОЗАМЕЩЕНИЕ В СЕЛЬСКОМ ХОЗЯЙСТВЕ: КРИЗИСЫ ПЕРЕПРОИЗВОДСТВА, ВЫБОР ИНСТИТУЦИОНАЛЬНОЙ ПОЛИТИКИ, ПРИМЕНЕНИЕ ПОВЕДЕНЧЕСКОЙ ЭКОНОМИКИ

Keywords: INSTITUTIONAL REFORMS, IMPORT SUBSTITUTION, AGRICULTURE, BEHAVIOURAL ECONOMY, CRISIS OF OVERPRODUCTION, PRODUCTION STRUCTURE

Abstract: The policy of import substitution showed the first results in the agricultural production sector. Despite the economic growth in the agricultural production sector, the problem of rational allocation of resources and choice of the optimal production structure has been outlined. Weak awareness of market actors about the volume of production of certain types of crops, product prices creates situations of uncertainty in which the decision-making process of producers can not be optimal. It is necessary to determine the options for providing producers of agricultural products with information on the volume and structure of production, which is possible both in the framework of the Pigouvian and Coasian directions of institutional reforms. The article shows options for implementing both directions, gives examples of the successful implementation of institutional reforms, and also suggests to depart from the concept of rationality in decision-making by actors in favour of limited rationality and libertarian paternalism in the spirit of the behavioural economy in accordance with the ideas of the Nobel Prize winner in economics R. Thaler (2017) and his predecessors, G.Simon (1978), T. Schultz (1979), D. Kahneman (2002). The article uses the methodology of institutional analysis and behavioural economics to determine possible directions of influence on decision-making by agricultural producers in order to ensure the most efficient production structure, a balanced distribution of income and avoid overproduction crises for individual crops.

Authors: Osipov Andrei Nikolaevich, Gasanova KHatimat Nabievna, Veselovskii Mikhail IAkovlevich, Osipov Vladimir Sergeevich, Gnezdova IUliia Vladimirovna