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Price Support (price + support)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	66%
Humanities and Social Sciences	33%

Selected Abstracts

An Evaluation of the Compensation Required by European Union Cereal Growers to Accept the Removal of Price Support

JOURNAL OF AGRICULTURAL ECONOMICS, Issue 3 2003
Rob Fraser
Motivated by the policy trend of exposing European Union farmers to more market risk by reducing price support, this paper evaluates the compensation required by EU cereal growers to accept the complete removal of price support. Additional considerations are whether this policy change also includes the removal of set-aside, or features only a partial removal of price support. A model is developed which captures the main on- and off-farm factors influencing grower perceptions of the impact of this policy change. This model is subjected to a numerical analysis which shows that divergent assessments of the expected profitability of releasing to production land previously set-aside mean growers are unlikely to agree whether compensation is even required. It is concluded that the retention of set-aside for environmental purposes is likely to mean growers are more united in their perception of the need for, and amount of, compensation to accept the removal of price support. [source]

The Birth of the CAP Die Geburt der GAP La naissance de la PAC

EUROCHOICES, Issue 2 2008
David R. Stead
Summary The Birth of the CAP Fifty years ago, a Conference was held at Stresa which could be said to be the single event that most appropriately marks the birth of the CAP. Although five policy objectives had been written into the 1957 Treaty of Rome, these have been widely criticised for being vague and contradictory, and the Treaty contained very few stipulations on the specific policy instruments to be adopted. The Stresa Conference made important, but incomplete, progress towards finalising the policy framework. Most notably, it was generally agreed to avoid a level of price support that created unwanted commodity surpluses and inhibited structural adjustment. But these good intentions, and the positive ,European spirit' of the Conference, began to unravel as soon as the fraught decisions were taken on the details of unifying the protectionist agricultural policies of six different countries. In particular, the decision to fix the initial level of common cereals prices at the upper end of the national spread set an unsatisfactory reference point for other support prices; and an attempt to introduce a genuine common structural policy was rejected. At the turn of the 1970s, the CAP was clearly unbalanced and protectionist, but the Community's first fully-fledged common policy had been constructed. Il y a cinquante ans, s'est tenue à Stresa une Conférence qui pourrait être considérée comme l'évènement unique qui marque le mieux la naissance de la PAC. Bien que cinq objectifs pour l'action publique aient été inscrits dans le Traité de Rome en 1957, leur caractère imprécis et contradictoire a fait l'objet de nombreuses critiques et le Traité ne comportait que de très rares indications sur les instruments de politique à adopter. La Conférence de Stresa a permis de réaliser des progrès importants mais incomplets dans la définition du cadre de l'action publique. Intéressant à noter, il a généralement été convenu d'éviter un niveau de soutien des prix qui engendrerait des surplus excessifs de produits de base et empêcherait l'ajustement structurel. Mais ces bonnes intentions, ainsi que l'esprit "européen" positif de la Conférence, ont commencéà se dissoudre dès que des décisions problématiques furent prises sur le détail de l'uniformisation des politiques agricoles protectionnistes de six pays différents. En particulier, la décision consistant à fixer le niveau initial des prix communs des céréales à la borne supérieur du spectre des prix nationaux a constitué un point de référence peu satisfaisant pour les autres prix de soutien; et la tentative d'introduire une vraie politique commune des structures a avorté. Au tournant des années soixante dix, la PAC était nettement déséquilibrée et protectionniste, mais la première politique complètement commune de la Communautéétait en place. Vor 50 Jahren fand in Stresa eine Konferenz statt, bei welcher es sich wohl um das einzige Ereignis handelt, welches am zutreffendsten als Geburtstag der GAP betrachtet werden kann. Obgleich die politische Zielsetzung bereits 1957 in den Römischen Verträgen festgelegt worden war, standen diese wegen ihrer vagen Formulierung und Widersprüchlichkeit häufig im Kreuzfeuer der Kritik. Die Verträge enthielten nur sehr wenige konkrete Vereinbarungen im Hinblick auf die einzuführenden politischen Instrumente. Durch die Konferenz in Stresa konnten wichtige, jedoch unvollständige, Fortschritte bei der Ausarbeitung der politischen Rahmenbedingungen erzielt werden. Vor allem gab es den allgemeinen Konsens, dass es aufgrund der Preisstützung nicht zu unerwünschten Überschüssen bei Agrarprodukten und zu einer Hemmung der Strukturanpassungen kommen dürfe. Diese guten Absichten und die "europäische Gesinnung" der Konferenz schwanden jedoch, als die bedeutsamen Entscheidungen hinsichtlich der Einzelheiten für die Vereinheitlichung der protektionistischen Agrarpolitiken der sechs verschiedenen Länder getroffen wurden. Insbesondere die Entscheidung, das Anfangsniveau der gemeinsamen Preise für Getreide an der oberen Grenze der nationalen Preisspannen festzumachen, legte einen unbefriedigenden Referenzpunkt für die übrigen Stützpreise fest. Der Vorschlag, eine originär gemeinsame Strukturpolitik einzuführen, wurde abgelehnt. Um 1970 war die GAP eindeutig unausgewogen und protektionistisch; der Entwurf der ersten vollständigen gemeinsamen Politik der Gemeinschaft war jedoch abgeschlossen. [source]

An Evaluation of the Compensation Required by European Union Cereal Growers to Accept the Removal of Price Support

Regulatory Environment, Changing Incentives, and IPO Underpricing in the Korean Stock Market,

ASIA-PACIFIC JOURNAL OF FINANCIAL STUDIES, Issue 2 2010
Inseok Shin
G24; G28; G32 Abstract I examine the importance of price support regulation in explaining IPO underpricing in the Korean stock market from 2001 through 2007. In contrast to the US practice where price support is provided effectively at the cost of the issuing firms, the price support in Korea resulted in direct costs to the underwriters. I construct a simple model to capture this feature of the regulation where IPO prices are determined through the interaction of the maximizing behaviors of underwriters and issuers. In the model, three variables, namely, the expected post-IPO price volatility, size of newly issued shares, and size of tradable shares, are specified to affect the opportunity costs of underpricing. When combined with the regulatory regime change in 2003, which lightened underwriters' obligations towards price support, the model implies that the magnitudes of the relationships between the three variables and underpricing have decreased since 2003. I test the hypotheses and find supportive empirical results: the relationship of underpricing with the expected price volatility has changed from positive to insignificant; those with sizes of newly issued and tradable shares from insignificant to negative. The findings contrast with existing Korean studies that do not find any evidence that price support regulation decreased the opportunity cost of underpricing for underwriters. The results also illustrate a more general point that to fully understand underpricing in a given stock market, it is crucial to take into account the regulatory environment that systematically influences agents' incentives to control or generate underpricing. [source]

,Sowing the Seeds of Their Own Destruction': Southern Planters, State Policy and the Market, 1933,1975

JOURNAL OF AGRARIAN CHANGE, Issue 2 2006
BILL WINDERS
In this article, I examine the relationship between class, state and market. I analyse the process of class transformation, tracing the demise of the Southern planters. Scholars analysing the retrenchment of US agricultural policy in the 1970s frequently overlook the profound influence that this class segment had on the agricultural policy of price supports and production controls. Yet, this policy of supply management contributed to the transformation of the plantation,tenant system in the South. This transformation created an opportunity for the emergence of the civil rights movement, which further weakened the Southern planters and allowed for changes in agricultural policy. The retrenchment of agricultural policy between 1950 and 1975, then, must be understood in light of this process of class transformation. [source]

The Moral Economy of Tobacco

AMERICAN ANTHROPOLOGIST, Issue 4 2009
David Griffith
ABSTRACT Even faced with overwhelming evidence that tobacco threatens human health, along with economic developments undermining their status as independent producers, North Carolina tobacco farmers view tobacco production in ways congruent with a moral economy. A shift from independent to contract production of tobacco and the dismantling of government price supports have challenged this moral economy, converting tobacco producers into a quasi,working class dependent on tobacco companies while leading to fewer tobacco farms and an increase in the average tobacco farm's size. These changes signal a shift away from a moral economy of tobacco, although moral-economic dimensions remain. Producers today emphasize different moral dimensions of economic behavior, such as producing quality human beings, than during earlier eras, when moral-economic actors pressed for state intervention in economic crises. Moral-economic principles are not restricted to either non-Western or historical peoples but, rather, influence economic production and ideology in advanced capitalist settings today. [source]