Conference paper

Publication year: 2012

DOI Link: https://doi.org/10.22004/ag.econ.122467

Conference: 123rd EAAE Seminar "Price Volatility and Farm Incomes Stabilisation: Modelling Outcomes and Assessing Market and Policy Based Responses"

Abstract: 
This paper deals with a control theory approach to stabilize cyclical price movements. Firstly, we pursue a welfare economist’s approach, delineating a public objective function derived from consumer and producer surplus as well as trade budget at world market price. Trade is a control variable and the market price is a state variable. Moreover we assume adaptive formation of price expectation at the producer side. Secondly the control problem is outline and solved by discrete control theory. Thirdly, the paper makes suggestions how to translate the optimal control framework and results into a trade policy of the envisaged country. Finally, limitations are discussed and an outlook for broadening the concept for international concerns is offered.

Harvard Citation style: Nuppenau, E. (2012) Dynamic control as measure to stabilize agricultutal markets: On theory and options to correct cyclical movements, 123rd EAAE Seminar "Price Volatility and Farm Incomes Stabilisation: Modelling Outcomes and Assessing Market and Policy Based Responses", Dublin, February 23-24, 2012. https://doi.org/10.22004/ag.econ.122467

APA Citation style: Nuppenau, E. (2012, February 23-24, 2012). Dynamic control as measure to stabilize agricultutal markets: On theory and options to correct cyclical movements. 123rd EAAE Seminar "Price Volatility and Farm Incomes Stabilisation: Modelling Outcomes and Assessing Market and Policy Based Responses", Dublin. https://doi.org/10.22004/ag.econ.122467