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.
Year of publication: |
1982
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Authors: | Koo, Won W. ; Burt, Oscar R. |
Published in: |
Western Journal of Agricultural Economics. - Western Agricultural Economics Association - WAEA. - Vol. 07.1982, 01
|
Publisher: |
Western Agricultural Economics Association - WAEA |
Keywords: | Crop Production/Industries |
Saved in:
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