Analysis of Output Effect of Chinese Grain Intervention Policy

The paper initially establishes theoretical model on output effect of various grain intervention pol- icies under both finite and infinite purchasing circumstances,followed by the conclusion that whether subsidy policy and grain price under both circumstances would increase surplus yield counts on realistic authenticity of the assumption that peasants conduct grain production con- strained by the income limits,in addition,purchasing quantity under finite purchasing system ex- erts dual influence,positive as well as negative.Then we conduct empirical test about the above conclusion based on Chinese grain data since reform and opening-up,which supports that little contribution to the increase of surplus yield from subsidy policy,combined with relatively signifi- cant effect of grain price on nationwide average reveals no income constraint,furthermore,both the dual effects of purchasing quantity under finite purchasing system almost counteract with each other which means it just to affect total yield,not issuing in diffusing effect.