EconPapers    
Economics at your fingertips  
 

The Economics of Storing a Non-storable Commodity

Gerrit van Kooten, Andrew Schmitz and W. H. Furtan

Canadian Journal of Economics, 1988, vol. 21, issue 3, 579-86

Abstract: Commodity stabilization under a buffer stock and under a buffer fund are compared. In the c ase where a good cannot be physically stored, stability brought about by a buffer fund scheme cannot result in a net welfare improvement f or society. When instability is due only to demand variability, there are no gainers or losers; when instability is due to supply variabil ity, a buffer fund does not result in a welfare loss to society, but there is a transfer of income from taxpayers to producers. Hence, pro ducer arguments for a buffer fund are a desire for a redistribution o f income in their favor.

Date: 1988
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://links.jstor.org/sici?sici=0008-4085%2819880 ... EOSAN%3E2.0.CO%3B2-L (text/html)
only available to JSTOR subscribers

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:cje:issued:v:21:y:1988:i:3:p:579-86

Ordering information: This journal article can be ordered from
https://www.economic ... ionen/membership.php

Access Statistics for this article

Canadian Journal of Economics is currently edited by Katherine Cuff

More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Werner Antweiler ().

 
Page updated 2021-07-26
Handle: RePEc:cje:issued:v:21:y:1988:i:3:p:579-86