Premium
A Simulation Model for Evaluating Worldwide Buffer Stocks of Wheat
Author(s) -
Reutlinger Shlomo
Publication year - 1976
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1238571
Subject(s) - buffer stock scheme , stock (firearms) , buffer (optical fiber) , simulation modeling , stochastic simulation , natural resource economics , economics , business , econometrics , operations research , environmental economics , computer science , microeconomics , statistics , mathematics , engineering , mechanical engineering , telecommunications
Stochastic simulation is advocated for quantifying the impact of alternative buffer stock levels and storage policies on stabilizing world wheat supplies and for estimating the corresponding benefits and losses to the world economy, to the storage operation itself, to consumers, and to producers. Illustrative runs of the model show that stock levels which are optimal in terms of direct costs and benefits are likely to be too low to afford satisfactory levels of stabilization. However, buffer stock programs operated with insurance‐oriented storage rules could provide satisfactory protection against extreme shortfalls in grain supplies at a reasonably low cost.