Japanese Rice Market Liberalization: A Competitive Equilibrium Approach

Abstract

This paper quantifies the effect of Japanese rice imports on the Japanese rice market with special attention to the farmland market in the year 2000. Tariff and quota policies do not affect the equilibrium price of rice and rent significantly given the current acreage controls. The removal of the acreage control program would reduce the autarky price of rice by 30%. With free importation of rice into Japan, the price of rice would be halved, and the potential increase in the consumer surplus could be 0.3% of the 1995 Japanese GDP.