Description of the Price Bounds Model

Excerpts: The purpose of this report is (a) to give a status report on our research on reserve stocks of grain, and (b) to outline our plans for additional research. We hope that this report will serve as a stimulant to other analysts interested in the reserve stocks issue and that they will feel free to exchange ideas with the authors about the ideas contained in this report and related issues. The wheat stocks simulation model reported here is a prototype used as a first step in our overall research program on reserve stocks. Additional work is planned using this model. Based on what we learn from this prototype, we plan to develop a larger model containing food grains, feed grains, and soybeans. This report contains the following items: A. A description of the basic wheat stocks simulation model, B. Two sets of results using the simulator, C. Plans for additional use of the wheat reserve stocks simulator