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Market Intervention and International Price Stability

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  • Anthony C. Zwart
  • David Blandford

Abstract

A simple model is used to analyze the impact of domestic policies on international price stability. The impact of policies on the variance of world prices depends on the type of measures used, policy parameters, and whether instruments are used singly or in combination. Domestic agricultural policies are normally assumed to destabilize world prices. The model demonstrates that this may not occur, particularly when multiple interventions are used. Currently there is considerable emphasis on the reduction of protection. How this is achieved may have important implications for the stability of international prices as well as their average level.

Suggested Citation

  • Anthony C. Zwart & David Blandford, 1989. "Market Intervention and International Price Stability," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(2), pages 379-388.
    • Handle: RePEc:oup:ajagec:v:71:y:1989:i:2:p:379-388.
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    File URL: http://hdl.handle.net/10.2307/1241596
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    Cited by:

    1. Hans Binswanger & Ernst Lutz, 2003. "Agricultural trade barriers, trade negotiations and the interests of developing countries," Chapters, in: John Toye (ed.), Trade and Development, chapter 8, Edward Elgar Publishing.
    2. LAPAN, Harvey E. & LARUE, Bruno, 1995. "Monopoly Power in Domestic Production, Smuggling, and the Non-Equivalence Between Tariffs and Quotas," Cahiers de recherche 9526, Université Laval - Département d'économique.
    3. Maximilian Koppenberg & Martina Bozzola & Tobias Dalhaus & Stefan Hirsch, 2021. "Mapping potential implications of temporary COVID‐19 export bans for the food supply in importing countries using precrisis trade flows," Agribusiness, John Wiley & Sons, Ltd., vol. 37(1), pages 25-43, January.
    4. Kepulaje Abhaya Kumar & Prakash Pinto & Iqbal Thonse Hawaldar & Cristi Spulbar & Ramona Birau, 2021. "Crude oil futures to manage the price risk of natural rubber: Empirical evidence from India," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(10), pages 423-434.

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