IDEAS home Printed from https://ideas.repec.org/a/caa/jnlage/v55y2009i10id2612-agricecon.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/2612-AGRICECON.html
    Download Restriction: free of charge
    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/2612-AGRICECON.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.17221/2612-AGRICECON?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. Sarris, Alexander H., 2000. "Has world cereal market instability increased?," Food Policy, Elsevier, vol. 25(3), pages 337-350, June.
    4. 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.
    5. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Labson, B. Stephen & Rausser, Gordon C., 1992. "Modeling Phased Reduction of Distortionary Policies in the U.S. Wheat Market Under Alternative Macroeconomic Environments," Staff General Research Papers Archive 502, Iowa State University, Department of Economics.
    2. C. S. C. Sekhar, 2010. "Structure of the World Wheat Market: Some Implications for Strategic Trade Policy?," Journal of Quantitative Economics, The Indian Econometric Society, vol. 8(2), pages 142-158.
    3. Jeffrey D. McDonald & Daniel A. Sumner, 2003. "The Influence of Commodity Programs on Acreage Response to Market Price: With an Illustration Concerning Rice Policy in the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 857-871.
    4. Joël Cariolle & Michaël Goujon, 2015. "Measuring Macroeconomic Instability: A Critical Survey Illustrated With Exports Series," Journal of Economic Surveys, Wiley Blackwell, vol. 29(1), pages 1-26, February.
    5. C.S.C. Sekhar, 2021. "Price or income support to farmers? Policy options and implications," IEG Working Papers 420, Institute of Economic Growth.
    6. Peter ADAMIŠIN & Rastislav KOTULIČ & Ivana KRAVČÁKOVÁ VOZÁROVÁ & Roman VAVREK, 2015. "Natural climatic conditions as a determinant of productivity and economic efficiency of agricultural entities," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(6), pages 265-274.
    7. Z. Sojková & Z. Kropková & V. Benda, 2008. "Slovak agricultural farms in different regions - comparison of efficiency," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 54(4), pages 158-165.
    8. Gopakumar K.U. & V. Pandit, 2014. "Production, Procurement And Inflation-A Market Model For Food Grains," Working papers 238, Centre for Development Economics, Delhi School of Economics.
    9. Debnath, Deepayan & Babu, Suresh & Ghosh, Parijat & Helmar, Michael, 2018. "The impact of India’s food security policy on domestic and international rice market," Journal of Policy Modeling, Elsevier, vol. 40(2), pages 265-283.
    10. Monjardino, M. & McBeath, T. & Ouzman, J. & Llewellyn, R. & Jones, B., 2015. "Farmer risk-aversion limits closure of yield and profit gaps: A study of nitrogen management in the southern Australian wheatbelt," Agricultural Systems, Elsevier, vol. 137(C), pages 108-118.
    11. David Dawe, 2009. "The Unimportance of “Low” World Grain Stocks for Recent World Price Increases," Working Papers 09-01, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    12. Christophe Gouel, 2012. "Agricultural Price Instability: A Survey Of Competing Explanations And Remedies," Journal of Economic Surveys, Wiley Blackwell, vol. 26(1), pages 129-156, February.
    13. Ilhem Baghdadli & Hela Cheikhrouhou & Gael Raballand, 2007. "Strategies for Cotton in West and Central Africa : Enhancing Competitiveness in the "Cotton 4"," World Bank Publications - Books, The World Bank Group, number 6784.
    14. Robert Finger & Nadja El Benni, 2012. "A Note on Price Risks in Swiss Crop Production – Empirical Results and Comparisons with other Countries," Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), Swiss Society for Agricultural Economics and Rural Sociology, vol. 5(1), pages 131-151.
    15. Kindie, Getnet & Verbeke, Wim & Viaene, Jacques, 2006. "Stochastic Producer Prices and Shock Persistence in Agriculture: Implications for Food Policy and Price Information," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 12(2), pages 1-81, November.
    16. Nourou, Mohammadou, 2015. "Can Mastitis ‘Contaminate’ Poultry? Evidence on the Transmission of Volatility between Poultry and Other Commodity Prices," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(A), pages 1-14, July.
    17. C. S. C. Sekhar & Devesh Roy & Yogesh Bhatt, 2018. "Food inflation and volatility in India: trends and determinants," Indian Economic Review, Springer, vol. 53(1), pages 65-91, December.
    18. David Tschirley & Colin Poulton & Patrick Labaste, 2009. "Organization and Performance of Cotton Sectors in Africa : Learning from Reform Experience," World Bank Publications - Books, The World Bank Group, number 2604.
    19. Sekhar, C.S.C., 2012. "Agricultural market integration in India: An analysis of select commodities," Food Policy, Elsevier, vol. 37(3), pages 309-322.
    20. Moledina, Amyaz A. & Roe, Terry L. & Shane, Mathew, 2004. "Measuring Commodity Price Volatility And The Welfare Consequences Of Eliminating Volatility," 2004 Annual meeting, August 1-4, Denver, CO 19963, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:caa:jnlage:v:55:y:2009:i:10:id:2612-agricecon. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivo Andrle (email available below). General contact details of provider: https://www.cazv.cz/en/home/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.