Export Restrictions and Price Insulation During Commodity Price Booms

摘要: For individual countries, variable trade barriers can be used to reduce the volatility of domestic relative world prices. If this is done by countries accounting for a large share market, its effect offset increases in price volatility. This study shows nature resulting collective action problem, with policy being ineffective on average stabilizing prices while increasing income transfers from terms-of-trade changes. A simple approach assessing contribution insulation developed and new estimates agricultural distortions assess spikes 1972-74 2006-08 rice wheat. The analysis suggests that 45 percent increase 2006-08, 30 wheat prices, was due insulating behavior. One sign progress since substantial reduction extent price-insulating behavior industrial countries. provides little benefit market because not classifying themselves at World Trade Organization as developing account only 3 consumption. But it does offer some where non-developing 27