Price Discrimination and State Trading: The Case of U.S. Wheat

David W Skully

European Review of Agricultural Economics, 1992, vol. 19, issue 3, 313-29

Abstract: This paper presents a model of a state trading agency exercising export price discrimination in price and non-price dimensions. The model is applied to the Commodity Credit Corporation (CCC) of the United States and the export policy instruments it employs to effect discrimination. Measures of the country-specific degree of discrimination are calculated for each subsidy instrument. The analysis demonstrates that the CCC employs price discrimination in subsidizing wheat exports and that the observed incidence of discrimination is consistent with the hypothesized model of a state trading agency. Copyright 1992 by Oxford University Press.

Date: 1992
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