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Food price stabilization in an open country

Published by:
FARM-D
Document
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Publication date
03/05/2012
Number of Pages
24
Language:
English
Type of Publication:
Other
Focus Region:
Global
Focus Topic:
Market / Trade
Type of Risk:
Market-related
Type of Risk Managment Option:
Risk reduction/mitigation
Commodity:
Crops
Author
Christophe Gouel

This presentation made at the World Bank in May 2012 at an event entitled “Agricultural Price Risk Management Frameworks: Applications in India”. The seminar presented a framework to understand and assess agricultural price stabilization options, using Indian expamples. The author addresses the following questions:

  • What is the optimal food price stabilization policy in a small open economy when consumers are risk averse?
    • Is increasing bu?er stocks a good answer to food price instability?
    • What is the optimal combination of trade and storage policy?
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