Price Bands and Buffer Funds

Abstract

Price-band stabilization schemes are nidely used although the; have generally been regarded as second-best options. I n this paper. it is shown that a class of control problems with plausible social welfbrr functions yields price-band stabilization as the optimal solution. Thus the proponents of price-band schemes need not be regarded as 'sa t isficers '.

Generalized Expected Utility Theory

“…A second example is that of price-band stabilization, which involves a change in distribution by which all prices lying outside some upper and lower bounds are set equal to those bounds. Several authors including Eeckhoudt and Hansen (1980), Quiggin and Anderson (1981) and Meyer and Ormiston (1983) have independently proved the result that price-band stabilization will always lead to an increase in the output of a risk averse producer and the same logic carries over to the two asset portfolio problem.…”

The effects of purchasing and price subsidy policies for agricultural products under target zones

“…While there is one line of literature discussing the impact of government policies on agricultural product wholesale prices, such as Quiggin and Anderson (1981), Don et al (1992), Lai et al (1996), Chen et al (2013), Gouel (2013) and Yu (2014), they discuss different policies by different methodologies. This paper follows the methodology in Krugman (1991), Lai and Chang (2001) and Chen et al (2013), and discusses whether agricultural product wholesale price is more stable under the agricultural product price target zone associated with product purchasing or price subsidy strategies, compared to no target zone policies, when there is a disturbance in the agricultural market.…”

“…How to keep a stable price has been one of the central issues in the field of agricultural economics. Quiggin and Anderson (1981) suggest the authority to stabilize the agricultural price by using buffer stock scheme or buffer fund scheme.…”

Agricultural Input Subsidies and the Marketing of Agricultural Products

“…the price of agricultural and manufacturing products, is crucial. While there is a body of literature on the effect of government policies on the wholesale price of agricultural products, Quiggin and Anderson (1981), Don et al (1992), Lai et al (1996), , Gouel (2013) and Yu (2014) discussed different policies using different methodologies.…”