Conducting a price band: some discordant notes

Brian D. Wright and Jeffrey C. Williams

No 291736, WAEA/ WFEA Conference Archive (1929-1995) from Western Agricultural Economics Association

Abstract: The popularity of price bands adjusted for long run structural changes as market stabilization rules is no doubt due to their apparent virtues of symmetry and simplicity of operation. In fact, the possibility of structural. shifts or long-run trends in prices of storable commodities poses a formidable challenge to the successful operation of such rules. Even if trends or shifts are somehow perfect!y identified, the common prescription of a symmetric price band for stabilizing prices has effects on stocks, producers, and the public budget that are counter-intuitive and not generally recognized, whereas the net effect on the price distribution can be of modest magnitude relative to the managerial challenges presented by the operation of a price band.

Keywords: Demand and Price Analysis; Agricultural and Food Policy (search for similar items in EconPapers)
Pages: 35
Date: 1993-07
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/291736/files/WAEA-0199.PDF (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:waeaar:291736

DOI: 10.22004/ag.econ.291736

Access Statistics for this paper

More papers in WAEA/ WFEA Conference Archive (1929-1995) from Western Agricultural Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().