An Investigation of the Effect of Support Policies of Government on Income Risk of Egg Producers through an Application of CCV Index

Hosseini, Seyed Safdar; Iravani, Samaneh

An Investigation of the Effect of Support Policies of Government on Income Risk of Egg Producers through an Application of CCV Index

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Abstract

The main goal in carrying out this paper was to investigate the impacts of government’s support policies on income risk of egg producers in Iran during years 1989-2008. Index CCV, was employed to assess the variation in income of the producers. The results revealed that, market price support along with the overall support policies lead to a lowering of the percentage variations in income risk of egg producers. The risk decreasing effect of these polices was significant at a probability level of 5%, and meanwhile it was found that market price support and the overall support policies each lowered the income risk of egg producers by 10, and 2.92% respectively. In conclusion, the implementation of market adjustment policies, the choosing of optimal combinations of different support policies as well as variation in supports, depending upon the operational sector are fully emphasized.

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