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Commodity Price Stabilization in a Peasant Economy

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  • Israel Finkelshtain
  • James A. Chalfant

Abstract

The peasant household's preferences for price stabilization are shown to depend on observable parameters describing consumption and production decisions. A measure of willingness to pay is obtained for the case where the household is engaged in both the production and the consumption of the commodity in question. For plausible parameter values, it appears likely that the peasant household will prefer price stabilization and that stabilization of the producer price alone dominates complete stabilization. Copyright 1997, Oxford University Press.

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File URL: http://hdl.handle.net/10.2307/1244278
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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 79 (1997)
Issue (Month): 4 ()
Pages: 1208-1217

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Handle: RePEc:oup:ajagec:v:79:y:1997:i:4:p:1208-1217

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Cited by:
  1. Delphine Boutin, 2011. "D’une crise à l’autre : Mesurer l’impact des prix alimentaires sur la pauvreté," Larefi Working Papers 1106, Larefi, Université Bordeaux 4.
  2. Bellemare, Marc F. & Barrett, Christopher B. & Just, David R., 2010. "The Welfare Impacts of Commodity Price Fluctuations: Evidence from Rural Ethiopia," MPRA Paper 24457, University Library of Munich, Germany.
  3. Chen, Jing & Rozelle, Scott & Carter, Colin A., 1999. "Grain Price Stability And Farmer Decision Making In China," 1999 Annual meeting, August 8-11, Nashville, TN 21538, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  4. Delphine Boutin, 2011. "D'une crise à l'autre : mesurer l'impact des prix alimentaires sur la pauvreté," Working Papers hal-00637608, HAL.
  5. repec:laf:wpaper:201106 is not listed on IDEAS
  6. Kindie Getnet, 2009. "Optimising the policy cost of market stabilisation: Which commodity matters most in Ethiopia?," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(3), pages 362-378.
  7. World Bank, 2005. "Managing Food Price Risks and Instability in an Environment of Market Liberalization," World Bank Other Operational Studies 8264, The World Bank.

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