The Economics of International Grain Reserve Systems

Abstract

The purpose of this thesis is to provide a general theoretical and empirical framework which can be used to analyze the issues that are fundamental in the economic analysis of international grain reserves. The major problems and considerations that relate to the institution of a reserve system are first examined. Previous and current international efforts toward institution of grain reserves are reviewed in view of past and current developments in international grain markets. A general equilibrium theory of production fluctuations and stabilization via stockpiling is developed and is used to analyze the impact of stabilization on consuming and producing sectors of a closed economy.