Economic policy in the agriculture is as a form of parametric management

Issue № 1, 2021, article № 3, pages 27-34

Language: Russian

Original language title: ЭКОНОМИЧЕСКАЯ ПОЛИТИКА В ОБЛАСТИ СЕЛЬСКОГО ХОЗЯЙСТВА КАК ФОРМА ПАРАМЕТРИЧЕСКОГО УПРАВЛЕНИЯ

Keywords: ECONOMIC POLICY, AGRARIAN POLICY, AGRICULTURE, STATE REGULATION, PARAMETRIC MANAGEMENT

Abstract: The article considers the main tools of agrarian policy within the framework of the model of parametric management of behaviour of economic entities. These instruments include: fixed and commodity transfers, as well as the minimum price. The main feature of this approach is ensuring the involvement of economic entities in agricultural activities even after the abolition of incentive measures. The same tools can give different results under different conditions, be different effective in different models of behaviour of business entities. On the other hand, the considered approach allows you to distinguish tools that claim to be invariants of parametric control, among which is the minimum price. This tool, according to the parametric behaviour management model of business entities, is the most effective for markets with a positive demand slope. Such demand is known to be characteristic of Giffen goods and essential goods in conditions of instability. Among these products are socially significant food products. The article provides a comparative analysis of the model results with agricultural policy tools in Russia and foreign countries (USA and Europe). It is shown that price regulation for some food products in foreign countries corresponds to the conclusions of the model. A typical example of establishing a lower price boundary is the price regulation of agriculture in the United States. At the same time, opposing approaches are used in Russia. Thus, during a period of instability, the practice of setting maximum prices for socially significant food is used. On the other hand, in the framework of the approach we are developing, the opposite regulatory measure can be used - setting minimum prices for food. Such a measure can contribute to the development of agricultural markets by stimulating entry into the industry of new participants and increasing competition in the corresponding markets. If necessary, this measure can be accompanied by subsidies to low-income consumers.

Authors: Obydenov Aleksandr IUrevich