AN ECONOMIC ANALYSIS OF STABILIZING SCHEMES

The main purpose of this paper is to analyze the welfare implications of stabilizing consumption and production and to compare it with the already-known welfare implications of stabilizing prices. Two sets of assumptions regarding supply behavior will be considered: (1) supply reacts instantaneously to a change in market prices, (2) producers react to changes in expected prices and expectations are "rational" within the context developed by J.F. Muth.


Issue Date:
1975
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/13643
Total Pages:
42
Series Statement:
Staff Paper P75-5




 Record created 2017-04-01, last modified 2018-01-22

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