IDEAS home Printed from https://ideas.repec.org/a/ags/ajaeau/22972.html
   My bibliography  Save this article

Optimal Buffer Stock Policies For Wheat At The World Level

Author

Listed:
  • Kennedy, John O.S.

Abstract

Alternative wheat storage policies which maximise the expected present value of returns for consumers, producers, a monopoly storage agency and society as a whole are derived using a dynamic programming model. Results are compared with those from an earlier simulation model, and are found to justify higher investment in storage capacity compared with that suggested by the simulation model. The model is extended to derive optimal storage policies if production follows a stochastic cobweb process.

Suggested Citation

  • Kennedy, John O.S., 1979. "Optimal Buffer Stock Policies For Wheat At The World Level," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 23(3), pages 1-13, December.
    • Handle: RePEc:ags:ajaeau:22972
    DOI: 10.22004/ag.econ.22972
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/22972/files/23030163.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.22972?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. C. Robert Taylor & Hovav Talpaz, 1979. "Approximately Optimal Carryover Levels for Wheat in the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(1), pages 32-40.
    2. Gustafson, Robert L., 1958. "Carryover levels for grains: A method for determining amounts that are optimal under specified conditions," Technical Bulletins 157231, United States Department of Agriculture, Economic Research Service.
    3. Shlomo Reutlinger, 1976. "A Simulation Model for Evaluating Worldwide Buffer Stocks of Wheat," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 58(1), pages 1-12.
    4. Chris M. Alaouze & A. S. Watson & N. H. Sturgess, 1978. "Oligopoly Pricing in the World Wheat Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(2), pages 173-185.
    5. Chris M. Alaouze & N.H. Sturgess & A.S. Watson, 1978. "Australian Wheat Storage: A Dynamic Programming Approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 22(2-3), pages 158-174, 08-12.
    6. David Blandford & Seon Lee, 1979. "Quantitative Evaluation of Stabilization Policies in International Commodity Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(1), pages 128-134.
    7. Alaouze, Chris M. & Sturgess, Neil H. & Watson, Alistair S., 1978. "Australian Wheat Storage: A Dynamic Programming Approach," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 22(2-3), pages 1-17, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Koo, Won W. & Burt, Oscar R., 1982. "U.S. Wheat Storage Control Under Joint Criteria Of Mean Benefits And Price Variation," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 7(1), pages 1-12, July.
    2. Kennedy, John O.S., 1981. "World Grains: Evaluating the Use of Buffer Stocks for Reducing the Impact of Yield Variability of Four Grains," 1981 Occasional Paper Series No. 2 197138, International Association of Agricultural Economists.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Makki, Shiva S. & Tweeten, Luther G. & Miranda, Mario J., 2001. "Storage-trade interactions under uncertainty: Implications for food security," Journal of Policy Modeling, Elsevier, vol. 23(2), pages 127-140, February.
    2. Pinckney, Thomas C., 1988. "Storage, trade, and price policy under production instability: maize in Kenya," Research reports 71, International Food Policy Research Institute (IFPRI).
    3. Koo, Won W. & Burt, Oscar R., 1982. "U.S. Wheat Storage Control Under Joint Criteria Of Mean Benefits And Price Variation," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 7(1), pages 1-12, July.
    4. Alaouze, Chris M. & Sturgess, Neil H. & Watson, Alistair S., 1978. "Australian Wheat Storage: A Dynamic Programming Approach," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 22(2-3), pages 1-17, August.
    5. Watson, Alistair S., 1996. "Principles of Grain Marketing: Some Lessons from Australian Experience," Technical Reports 113821, Australian Centre for International Agricultural Research.
    6. John C. Quiggin & Jock R. Anderson, 1981. "Price Bands and Buffer Funds," The Economic Record, The Economic Society of Australia, vol. 57(1), pages 67-73, March.
    7. Areal, Francisco José & Balcombe, Kevin & Rapsomanikis, George, 2016. "Testing for bubbles in agriculture commodity markets," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 16(01), June.
    8. Labys, Walter C., 1988. "Recent developments in commodity modeling : a World Bankfocus," Policy Research Working Paper Series 119, The World Bank.
    9. Brockhaus, Jan & Kalkuhl, Matthias & Kozicka, Marta, 2016. "What Drives India’s Rice Stocks? Empirical Evidence," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235659, Agricultural and Applied Economics Association.
    10. Gabriela Simonet & Julie Subervie & Driss Ezzine-De-Blas & Marina Cromberg & Amy Duchelle, 2015. "Paying smallholders not to cut down the amazon forest: impact evaluation of a REDD+ pilot project," Working Papers 1514, Chaire Economie du climat.
    11. Roberts, Michael J. & Tran, A. Nam, 2013. "Conditional Suspension of the US Ethanol Mandate using Threshold Price inside a Competitive Storage Model," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150717, Agricultural and Applied Economics Association.
    12. van der Merwe, G. P., 1990. "Research Note: Organised Futures Trading," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 29(1), February.
    13. Luna Méndez, Nexeai & Jaramillo Villanueva, José Luis & Ramírez Juárez, Javier, 2016. "Factores explicativos de la disposición a pagar por atributos culturales en nuez de Castilla," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 16(01), June.
    14. Judd, Kenneth L., 2002. "The parametric path method: an alternative to Fair-Taylor and L-B-J for solving perfect foresight models," Journal of Economic Dynamics and Control, Elsevier, vol. 26(9-10), pages 1557-1583, August.
    15. Sophie Mitra & Jean‐Marc Boussard, 2012. "A simple model of endogenous agricultural commodity price fluctuations with storage," Agricultural Economics, International Association of Agricultural Economists, vol. 43(1), pages 1-15, January.
    16. Vanzetti, David & Kennedy, John O.S., 1989. "Optimal Retaliation in International Commodity Markets," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 57(01-02-03), pages 1-25, December.
    17. Nicolas Legrand, 2019. "The Empirical Merit Of Structural Explanations Of Commodity Price Volatility: Review And Perspectives," Journal of Economic Surveys, Wiley Blackwell, vol. 33(2), pages 639-664, April.
    18. Christophe Gouel & Nicolas Legrand, 2017. "Estimating the Competitive Storage Model with Trending Commodity Prices," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 32(4), pages 744-763, June.
    19. Xiaoyu Sun & Xiaoli Yang & Ruilong Zhang, 2022. "The Determinants of Grape Storage: Evidence from Grape Growers in China," Agriculture, MDPI, vol. 12(12), pages 1-14, December.
    20. Brennan, Donna C. & Wright, Brian D., 1992. "Futures Markets, Storage and Convenience Yield," 1992 Conference (36th), February 10-13, 1992, Canberra, Australia 146425, Australian Agricultural and Resource Economics Society.

    More about this item

    Keywords

    Agricultural and Food Policy;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ajaeau:22972. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaresea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.