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Domestic Costs of Statutory Marketing Authorities: The Case of the Canadian Wheat Board
Author(s) -
Carter Colin A.,
Loyns R.M.A.,
Berwald Derek
Publication year - 1998
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 - 10.2307/1244504
Subject(s) - stylized fact , business , statutory law , marketing , marketing management , agricultural marketing , return on marketing investment , bureaucracy , government (linguistics) , economics , relationship marketing , law , political science , linguistics , philosophy , politics , macroeconomics
The Canadian Wheat Board (CWB) is a statutory marketing authority with exclusive control over exports of Canadian wheat and barley and sole authority over domestic marketing of milling wheat and malting barley. It is a government marketing board with implicit monopoly rights over the supply of wide‐ranging marketing services to farmers, but with no legal responsibility to farmers. These characteristics fit a stylized Niskanen model of bureaucratic decision making, where the CWB is modeled as supplying excess marketing services to farmers. Allowing the market to determine the quantity of marketing services would result in lower marketing costs and presumably higher farm incomes.