U.S. WHEAT STORAGE CONTROL UNDER JOINT CRITERIA OF MEAN BENEFITS AND PRICE VARIATION

A method based on stochastic dynamic programming is developed to derive efficiency frontiers for the trade-off between the long-run average social benefits and price variation. The method is used to quantify the importance of price variation per se as a criterion in U.S. wheat storage policy. The results suggest that a single criterion of maximum expected social benefits, calculated by the traditional surplus measures, is satisfactory because price variation is incidentally reduced enough that further reductions can be attained only a considerable opportunity cost.


Issue Date:
1982-07
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/32413
Published in:
Western Journal of Agricultural Economics, Volume 07, Number 1
Page range:
111-122
Total Pages:
12




 Record created 2017-04-01, last modified 2017-11-08

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