Producer Subsidy Equivalents and Evaluation of Support to Russian Agricultural Producers

Since many of the conditions taken for granted in mature market economies cannot be assumed for transition economies such as Russia, the validity of producer subsidy equivalents (PSE) measures is questionable. The authors calculate PSEs for Russia, being careful in the selection of appropriate farm prices and reference prices, and conduct a sensitivity analysis to indicate how the results could be influenced by changes in key assumptions. They also provide appropriate interpretations of PSE estimations for major agricultural commodities.