IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-1-349-26769-9_18.html
   My bibliography  Save this book chapter

The Interest Cost of a Buffer Stock is Not a Social Cost

In: Development Economics and Policy

Author

Listed:
  • John Spraos

Abstract

The stockpiling of a buffer stock scheme following a good harvest involves no resource cost. It is a gift of the gods and the incomes generated by buying the stock are matched by the producers’ transitory saving or reduced dissaving (relatively to the position without a buffer stock) so that there is no increased consumption to crowd-out anything else, even temporarily. If producers are credit-rationed, the buffer stock does generate increased consumption in the good harvest period but the producers gain from better intertemporal distribution of their consumption exceeds the interest cost of the buffer stock. The policy implications are explored.

Suggested Citation

  • John Spraos, 1998. "The Interest Cost of a Buffer Stock is Not a Social Cost," Palgrave Macmillan Books, in: David Sapsford & John-ren Chen (ed.), Development Economics and Policy, chapter 18, pages 336-348, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-1-349-26769-9_18
    DOI: 10.1007/978-1-349-26769-9_18
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:pal:palchp:978-1-349-26769-9_18. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    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.