초록 열기/닫기 버튼
Vegetable markets, especially Chinese cabbage in Korea periodically have suffered high price volatility due to the fluctuating supply and inelastic demand. Korean government have introduced many policy measures including disposal policy in order to mitigate high price volatility. This study examines the net impact of disposal policy on the price stabilization of Chinese cabbage using a dynamic partial equilibrium model. According to the ex-post scenario analysis, as the amount of disposal quantity increases, Chinese cabbage prices rises considerably in the short-run. However, it only moderately affect price volatility in the long-run and it would negatively affect price volatility as the amount of disposal quantity increases in some cases. The results imply that it is important to apply the appropriate amount at an appropriate time, rather than simply expanding the amount of disposal quantity in order to reduce price volatility in the long-run.
