英文摘要
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The purpose of the paper is to explore whether government subsidies can effectively improve the incomes of farmers and herders in Taiwan. The cross-section data are taken from the Report on the Survey of Family Income & Expenditure, published by Accounting and Statistics, Executive Yuan, Taiwan. In order to reduce the underestimation of the behaviour of the highest and lowest income households, the paper uses the Koenker and Bassett quantile regression model to explore the determinants of the incomes of farmers and herders, and to analyze the effects of the government subsidy policy, which can be divided into insurance subsidies and non-insurance subsidies. The empirical results show that, the effects of insurance and non-insurance subsidies have contrasting effects on incomes, with the negative effects of non-insurance subsidies partly offsetting the positive effects of government insurance subsidies. The quantile regression results show that regardless of the income levels of households, non-insurance subsidies cannot effectively improve the incomes of farmers and herders. Although the average incomes of fruit farmers are the lowest, the differences in incomes of the other cultivated crops are very small. Overall, the government subsidy policy has had discernible and measurable impacts, with the incomes of farmers of different cultivated crops seemingly approaching a common level.
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