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The Impact of Trade Restrictions on Price Stability in the World Wheat Market
Author(s) -
Shei ShunYi,
Thompson Robert L.
Publication year - 1977
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 - 10.2307/1239390
Subject(s) - economics , shock (circulatory) , international economics , world trade , world market , international trade , stability (learning theory) , agricultural economics , medicine , machine learning , computer science
A thirteen‐region quadratic programming model of world wheat trade is utilized to simulate the effects of unanticipated quantity changes on prices in the world wheat market under different degrees of trade restriction. Three scenarios characterized by different numbers of regions that permit price signals from international markets to be reflected into their domestic markets are specified. As the number of countries whose wheat trade is price responsive increases in the simulations, the percentage change in world price is smaller in response to a shock such as u.s. export controls or an unanticipated change in Soviet imports.