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Optimal Buffer Stock Policies For Wheat At The World Level

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  • John O.S. Kennedy

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.
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  • John O.S. Kennedy, 1979. "Optimal Buffer Stock Policies For Wheat At The World Level," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 23(3), pages 163-175, December.
    • Handle: RePEc:bla:ajarec:v:23:y:1979:i:3:p:163-175
    DOI: j.1467-8489.1979.tb00241.x
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    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.
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    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.

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