Market interventions, international price stabilization, and welfare implications

Research output: Contribution to journalArticlepeer-review

5 Scopus citations


The welfare effects of price stabilization are quantified under free trade and under distortionary policies when an exporting country protects domestic producers with price supports, an importing country pursues a price-fixing policy, and a second importing country follows a free trade policy. Results show that distortionary interventions cause greater world price variability. World gains from international price stabilization through a costless buffer stock scheme are higher under distortionary trade than under free trade.

Original languageEnglish
Pages (from-to)281-290
Number of pages10
JournalAmerican Journal of Agricultural Economics
Issue number2
StatePublished - May 1992


  • Distortionary trade
  • Free trade
  • Price stabilization
  • Welfare analysis


Dive into the research topics of 'Market interventions, international price stabilization, and welfare implications'. Together they form a unique fingerprint.

Cite this