Simulation of an econometric model to analyze the impact of a buffer stock scheme in the Bangladesh jute sector

In: The Bangladesh development studies: the journal of the Bangladesh Institute of Development Studies, Band 9, Heft 4, S. 1-33

Abstract

Using an econometric model of the Bangladesh jute sector for controlled policy experiments, the author investigates the effects of a buffer stocks-supported price stabilization scheme on this sector. Empirical probability distribution of buffer stocks size under alternative price stabilization policies. The study concludes that the large year-to-year jute price swings can be effectively contained at a reasonable net cost