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Price Discrimination and State Trading: The Case of U.S. Wheat

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  • Skully, David W

Abstract

This paper presents a model of a state trading agency exercising export price discrimination in price and non-price dimensions. The model is applied to the Commodity Credit Corporation (CCC) of the United States and the export policy instruments it employs to effect discrimination. Measures of the country-specific degree of discrimination are calculated for each subsidy instrument. The analysis demonstrates that the CCC employs price discrimination in subsidizing wheat exports and that the observed incidence of discrimination is consistent with the hypothesized model of a state trading agency. Copyright 1992 by Oxford University Press.

Suggested Citation

  • Skully, David W, 1992. "Price Discrimination and State Trading: The Case of U.S. Wheat," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 19(3), pages 313-329.
    • Handle: RePEc:oup:erevae:v:19:y:1992:i:3:p:313-29
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    Citations

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    Cited by:

    1. Pinelopi Koujianou Goldberg & Michael M. Knetter, 1997. "Causes and Consequences of the Export Enhancement Program for Wheat," NBER Chapters, in: The Effects of US Trade Protection and Promotion Policies, pages 273-296, National Bureau of Economic Research, Inc.
    2. Rienstra-Munnicha, Paul & Mulik, Kranti & Koo, Won W., 2006. "Empirically Analyzing The Impact Of U.S. Export Credit Programs On U.S. Agricultural Trade," Agribusiness & Applied Economics Report 23644, North Dakota State University, Department of Agribusiness and Applied Economics.
    3. William W. Wilson & Bruce L. Dahl, 2004. "Transparency and Bidding Competition in International Wheat Trade," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 52(1), pages 89-105, March.
    4. Hyberg, Bengt & Smith, Mark & Skully, David & Davison, Cecil, 1995. "Export credit guarantees: The commodity credit corporation and US agricultural export policy," Food Policy, Elsevier, vol. 20(1), pages 27-39, February.
    5. Diersen, Matthew A. & Wilson, William W. & Dahl, Bruce L. & Satyanarayana, Vidyashankara, 1997. "Additionality Of Credit Guarantees For U.S. Wheat Exports; Summary," Agricultural Economics Reports 23240, North Dakota State University, Department of Agribusiness and Applied Economics.
    6. Diersen, Matthew A. & Wilson, William W. & Dahl, Bruce L. & Satyanarayana, Vidyashankara, 1997. "Additionality Of Credit Guarantees For U.S. Wheat Exports," Agricultural Economics Reports 23425, North Dakota State University, Department of Agribusiness and Applied Economics.
    7. Young, Linda M. & Abbott, Philip C. & Leetmaa, Susan E., 2001. "Export Competition: Issues And Options In The Agricultural Negotiations," Commissioned Papers 14624, International Agricultural Trade Research Consortium.
    8. Wilson, William W. & Dahl, Bruce L., 2004. "The Section 301 Action And Effects Of The Canadian Wheat Board On U.S. Hard Red Spring And Amber Durum Wheat," Proceedings of the 8th Agricultural and Food Policy Systems Information Workshop, 2002: Keeping the Borders Open 16929, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
    9. Carew, Richard, 2000. "Pricing To Market Behavior: Evidence From Selected Canadian And U.S. Agri-Food Exports," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(2), pages 1-18, December.
    10. Skully, David W., 1990. "The Governance of Agricultural Trade: Perspectives from the 1940's," 1990: The Environment, Government Policies, and International Trade Meeting, December 1990, San Diego, CA 50884, International Agricultural Trade Research Consortium.
    11. Satyanarayana, Vidyashankara & Johnson, D. Demcey, 1998. "Credit Guarantee Programs And U.S. Market Share In Selected Wheat Import Markets," Agricultural Economics Reports 23284, North Dakota State University, Department of Agribusiness and Applied Economics.
    12. Dahl, Bruce L. & Wilson, William W. & Gustafson, Cole R., 1995. "Valuing Option Provisions for Export Credit Guarantees," Agricultural Economics Reports 23269, North Dakota State University, Department of Agribusiness and Applied Economics.
    13. Dahl, Bruce L. & Wilson, William W. & Gustafson, Cole R., 1999. "Option Values For Provisions In Export Credit Guarantees," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(2), pages 1-19, December.
    14. repec:ags:aare02:125165 is not listed on IDEAS
    15. Rude, James, 2000. "Reform of Agricultural Export Credit Programs," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 1(2), pages 1-13.
    16. Wilson, William W. & Johnson, D. Demcey & Dahl, Bruce L., 1999. "Transparency And Export Subsidies In International Wheat Competition," Agricultural Economics Reports 23208, North Dakota State University, Department of Agribusiness and Applied Economics.

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