Endogenous Price Policies and International Wheat Prices
构建模型分析各国小麦价格政策如何相互作用，导致国际价格低迷且不稳定，并估算出欧共体政策贡献了约80%的价格扭曲。
Abstract International prices are modeled as Cournot equilibrium interactions of national excess demand functions, which, in turn, are solutions of domestic welfare optimization problems. It is shown that interaction of national policies can lead to excess depression and instability of both international and domestic prices. The model is estimated for wheat and is used to show that, under free trade, average world prices would be much higher while price instability would be much lower. Furthermore, the European Economic Community policies alone contribute about 80% to these distortions.