| Abstract: | This paper is designed to bring into focus the numerous modeling attempts to analyze commodity price stabilization that have recently appeared. The studies examined begin with the Waugh-Oi-Massell framework and advance to econometric commodity modeling. Such a critique is considered necessary: None of the studies examined has overcome the myriad of problems that analysts have pointed out as essential for assessing the welfare outcomes of price stabilization schemes. As a consequence, stabilization analyses for similar commodities have produced conflicting results regarding predicted welfare outcome. The present appraisal attempts to provide a unity of direction to this work by (1) comparing recieved studies of a theoretical, empirical, and econometric modeling nature, and (2) suggesting possibilities for improving modeling analyses. |
