Price and quantity controlled agricultural markets and disequilibrium econometrics: a survey

This survey reviews the literature on estimating single markets in disequilibrium in the presence of regulated price andjor quantity controls, e.g., minimum price regimes andjor marketing quotas. Most of the literature is found to describe pure econometric technique, with only a few applications having emerged to date. Various reasons for the broad non-acceptance of this literature are offered, including a perceived lack of realism. Proposals to close this econometric theory-application gap are put forward, including: the use of effective demand concepts in specifying demand and supply functions; synthesizing some closely related literature on agricultural pricejquantity controls with disequilibrium econometrics (i.e., endogenous government policy and the effects controls have on yield uncertainty and price risk); and outlining more 'applicable' econometric technique extensions.