THE PRACTICE OF PRICE STABILISATION.

2008 ◽  
Vol 5 (2) ◽  
pp. 107-120
Author(s):  
A. N. DUCKHAM
Keyword(s):  
Price Stabilisation

PRICE STABILISATION VERSUS FISCAL STABILISATION

Kyklos ◽  
1959 ◽  
Vol 12 (3) ◽  
pp. 329-340
Author(s):  
C.N. VAKIL ◽  
P. R. BRAHMANAND
Keyword(s):  
Price Stabilisation

scholarly journals The welfare effects of coffee price volatility for Ethiopian coffee producers

2016 ◽  
Vol 8 (4) ◽  
pp. 288-304 ◽  
Author(s):  
Sushil Mohan ◽  
Firdu Gemech ◽  
Alan Reeves ◽  
John Struthers
Keyword(s):  
Design Methodology ◽  
Price Volatility ◽  
Welfare Effects ◽  
Policy Implications ◽  
Relative Risk Aversion ◽  
Welfare Gain ◽  
Content Type ◽  
Price Stabilisation ◽  
Unconditional Variance ◽  
Coffee Price

Purpose This paper aims to estimate the welfare effects for Ethiopian coffee producers from eliminating coffee price volatility. Design/methodology/approach To estimate volatility, the generalised autoregressive conditional heteroskedasticity technique is applied to monthly coffee prices in Ethiopia for the period 1976-2012. To distinguish between the unpredictable and predictable components of volatility, we obtain separate estimates of the conditional and unconditional variance of the residual. This is combined with estimates of the coefficient of relative risk aversion to measure the welfare effects from eliminating the unpredictable component of price volatility. Findings A key finding is that the welfare gain from eliminating coffee price volatility is small; the gain per producer comes to a meagre US$0.76 in a year. Originality/value This has important policy implications for the efficacy of price stabilisation mechanisms for coffee producers, i.e. any attempt to eliminate coffee price volatility at a cost may not be a preferred outcome for Ethiopian producers. The contribution of the paper lies in using the unconditional variance, as it more truly reflects price risk faced by coffee producers without overestimating it.

The Theory of Food Price Stabilisation

1989 ◽  
Vol 99 (398) ◽  
pp. 1065 ◽  
Author(s):  
David M. Newbery
Keyword(s):  
Food Price ◽  
Price Stabilisation
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