LOAN PROGRAMS, TARGET PRICES, AND STORAGE SUBSIDIES

Peter Berck and Andrew Schmitz

No 279182, 1982 Annual Meeting, August 1-4, Logan, Utah from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: In a simple model incorporating uncertainty and not risk aversion, loan programs and target price programs can stabilize prices; but if the programs' price is the nonprogram average price, the stabilized quantity will exceed the nonprogram average quantity. A target price program is more expansionary than a loan program. Without target prices in place, government storage subsidies is favored by producers; but with such a program, they oppose ,them.

Keywords: Demand and Price Analysis; Financial Economics (search for similar items in EconPapers)
Pages: 14
Date: 1982-08
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea82:279182

DOI: 10.22004/ag.econ.279182

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