英文摘要 |
The agricultural sector is the foundation of civilization during theperiod of economic development. To stabilize commodity prices andmaintain sufficient food production are two important goals for thegovernment. Most literature discusses these two issues separatelybecause of the conflict nature between price stability and food security,even though they should be considered simultaneously. This situation inwhich the government tries to maximize social welfare throughimplementation of policies under the consideration of two conflict goals isquite similar to the time inconsistency theory dealing with inflation andgrowth in Macroeconomics. In this article, we apply the methodology oftime inconsistency theory to discuss how the Rule and Discretion toaffect the optimal choices of commodity prices and food stocks. Then wewill discuss how the incentive mechanism claimed by Walsh to influencecommodity price and social welfare. The result shows parameters suchas the ratio of government purchase for commodity, the relative weightbetween prices and stocks, and the ratio of government food expenditureare key factors to affect the optimal level of commodity prices, foodstocks, social welfare and the effect of incentive mechanism on theeconomy. |