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U.S. Wheat Storage Control Under Joint Criteria Of Mean Benefits And Price Variation

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  • Koo, Won W.
  • Burt, Oscar R.

Abstract

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.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:wjagec:32413
    DOI: 10.22004/ag.econ.32413
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    References listed on IDEAS

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