government interventions in agricultural markets in order to stabilize commodity prices and producer incomes have had a long tradition. intervention has been at both the state and country levels and has been for the most part in the form of commodity-based schemes. this study represents an attempt to develop an appropriate methodology for analyzing the aggre-gate effects of a particular type of...

Market Year Average (MYA) prices enter into payment calculations for Price Loss Coverage (PLC) and Agricultural Risk Coverage (ARC), two commodity program alternatives available in the 2013 Farm Bill (see here for more details). The distribution of MYA prices will influence payment levels under both programs. Hence, quantifying the potential MYA price distributions is important for evaluating c...

Introduction World agriculture is at a turning point: economic growth, energy needs, and climate change redefine the equations of agricultural supply and demand and contribute to accelerate food prices. Biofuels have been particularly high on the global agenda largely due to rising concerns about national energy security, high energy prices, and global climate change, as well as the income expe...

This paper measures the response of bilateral trade flows to differences in industrial energy prices across countries. Using a panel for the period 1996-2011 including 42 countries, 62 sectors and covering 60% of global merchandise trade, we estimate the short-run effects of sector-level energy price asymmetry on trade. We find that changes in relative energy prices have a statistically signifi...

Food purchases differ substantially across countries. We use detailed household level data from the US, France and the UK to (i) document these differences; (ii) estimate a demand system for food and nutrients, and (iii) simulate counterfactual choices if households faced prices and nutritional characteristics from other countries. We find that differences in prices and characteristics are impo...

Assumption of exchange rate overshooting has significant position in international macroeconomic discussion. This phenomenon is one of the abnormal behaviors of exchange rate that happen in short run. Dornbusch (1976) shows that because speed of equilibrium prices is slow relative to asset markets and commodity prices are sticky in the short run, However, over time, commodity prices will rise a...

Sugarcane is an important industrial crop in South China, mainly grown in Guangdong, Guangxi, Yuennan and Fujian Provinces. State farms are important cane producers. They produce about one-tenth of the nation’s total cane. These sugar companies are integrated enterprises including farm and milling activities but, due to declining sugar prices, they are not particularly profitable. Under the “Re...

A study of equilibrium acreage allocation decisions at the farm and regional levels under risk aversion, yield uncertainty, and endogenous crop prices is undertaken in a two-crop, two-region setting. The main insight is that a partial specialization in one crop at a regional level may be an equilibrium dominant strategy relative to the more diversified crop mix produced on farm. This is due to ...