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Global implications of national price policies on the wheat market - quantitative assessment of world market effects

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  • J. Ziolkowska

    (Department of Agricultural Economics, Humboldt University of Berlin, Berlin, Germany)

  • K. Jechlitschka

    (Department of Agricultural Economics, Humboldt University of Berlin, Berlin, Germany)

  • D. Kirschke

    (Department of Agricultural Economics, Humboldt University of Berlin, Berlin, Germany)

Abstract

Price policy instruments are common political measures to influence the supply and export of agricultural products. Different price policies have thus different influence on national agricultural markets. These policies can also influence the world market and third countries provided that the exporting country places a high share of its production on the world market. Using a Cobb-Douglas market model we quantitatively assess global implications of national price policies in the EU-27, Russia, and the US (as leading wheat exporting countries) on the world market price for wheat and on welfare, foreign exchange, and producer surplus in third countries. The results prove that increasing protectionist price policies in the EU-27, Russia, and the US would only slightly influence the welfare in third countries. This policy would however bring about a higher decrease of foreign exchange and producer surplus in third countries.

Suggested Citation

  • J. Ziolkowska & K. Jechlitschka & D. Kirschke, 2009. "Global implications of national price policies on the wheat market - quantitative assessment of world market effects," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 55(10), pages 475-480.
    • Handle: RePEc:caa:jnlage:v:55:y:2009:i:10:id:2612-agricecon
    DOI: 10.17221/2612-AGRICECON
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    References listed on IDEAS

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    1. Sarris, Alexander H., 2000. "Has world cereal market instability increased?," Food Policy, Elsevier, vol. 25(3), pages 337-350, June.
    2. Alan Love, H. & Rausser, Gordon C., 1997. "Flexible public policy: The case of the United States wheat sector," Journal of Policy Modeling, Elsevier, vol. 19(2), pages 207-236, April.
    3. S. Covaci & Z. Sojková, 2006. "Investigation of wheat efficiency and productivity development in Slovakia," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 52(8), pages 368-378.
    4. Miljkovic, Dragan, 2004. "Agricultural trade, commodity programs, and income protection in the United States," Journal of Policy Modeling, Elsevier, vol. 26(1), pages 41-46, January.
    5. Sekhar, C. S. C., 2003. "Price formation in world wheat markets -- implications for policy," Journal of Policy Modeling, Elsevier, vol. 25(1), pages 85-106, January.
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    Cited by:

    1. Teresina Mancuso & Tibor Verduna & Simone Blanc & Giuseppe Di Vita & Filippo Brun, 2019. "Environmental sustainability and economic matters of commercial types of common wheat," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 65(4), pages 194-202.

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