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OPTIMAL BUFFER STOCK POLICIES FOR WHEAT AT THE WORLD LEVEL
Author(s) -
Kennedy John O.S.
Publication year - 1979
Publication title -
australian journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 0004-9395
DOI - 10.1111/j.1467-8489.1979.tb00241.x
Subject(s) - buffer stock scheme , dynamic programming , monopoly , stock (firearms) , investment (military) , production (economics) , microeconomics , stochastic programming , economics , value (mathematics) , present value , investment policy , environmental economics , operations research , computer science , mathematical optimization , mathematics , finance , engineering , mechanical engineering , machine learning , politics , political science , law , incentive
Alternative wheat storage policies which maximise the expected present value of returns for consumers, producers, a monopoly storage agency and society as a whole are derived using a dynamic programming model. Results are compared with those from an earlier simulation model, and are found to justify higher investment in storage capacity compared with that suggested by the simulation model. The model is extended to derive optimal storage policies if production follows a stochastic cobweb process.