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Grain Price Stability And Farmer Decision Making In China

Author

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  • Chen, Jing
  • Rozelle, Scott
  • Carter, Colin A.

Abstract

In this paper we find that real grain prices in China have displayed increased volatility in the past decade. This is true for rice, wheat, corn, and for most of provinces. Farmers in China are found to be risk averse because when they make acreage allocation decisions. Given the widespread access to land in China, farmers mostly respond negatively in their sown area decisions towards price risk. The large price variations from 1984-1995 may have contributed to the slowdown in agricultural output growth from 1984-1995.

Suggested Citation

  • Chen, Jing & Rozelle, Scott & Carter, Colin A., 1999. "Grain Price Stability And Farmer Decision Making In China," 1999 Annual meeting, August 8-11, Nashville, TN 21538, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea99:21538
    DOI: 10.22004/ag.econ.21538
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    File URL: https://ageconsearch.umn.edu/record/21538/files/sp99ch01.pdf
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    References listed on IDEAS

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    1. Israel Finkelshtain & James A. Chalfant, 1997. "Commodity Price Stabilization in a Peasant Economy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1208-1217.
    2. Jean-Paul Chavas & Matthew T. Holt, 1990. "Acreage Decisions Under Risk: The Case of Corn and Soybeans," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(3), pages 529-538.
    3. Mohammad Ismet & Andrew P. Barkley & Richard V. Llewelyn, 1998. "Government intervention and market integration in Indonesian rice markets," Agricultural Economics, International Association of Agricultural Economists, vol. 19(3), pages 283-295, December.
    4. Islam, Nurul & Thomas, Saji, 1996. "Foodgrain price stabilization in developing countries," Food policy reviews 3, International Food Policy Research Institute (IFPRI).
    5. Albert Park & Hehui Jin & Scott Rozelle & Jikun Huang, 2002. "Market Emergence and Transition: Arbitrage, Transaction Costs, and Autarky in China's Grain Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(1), pages 67-82.
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    Cited by:

    1. Wubiao Zhou, 2010. "The role of the state in making a national market," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 2(3), pages 276-297, September.

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