In this paper, we describe and compare two approaches to analyzing transactions costs in a general equilibrium setting. In the first approach, which we label the transactions costs approach, the commodity space is the same as that used in models without transactions costs. In the second approach, which we label the valuation equilibrium approach, the commodity space is chosen so that the exchan...

study of the variables which explain real exchange rate fluctuations and real exchange rate deviation from its long-run equilibrium path, indicates that these variables have negative effects on the supply of agricultural products, for export. therefore,it seems that any attempt on stabilizing real exchang rate and bringing it closer to its equilibrium rate can be favorable in the expansion of e...

This paper investigates the role of aid in mitigating the adverse effects of commodity export price shocks on growth in commodity-dependent countries. Using a large crosscountry dataset, we find that negative shocks matter for short-term growth, while the ex ante risk of shocks does not seem to matter. We also find that both the level of aid and the flexibility of the exchange rate substantiall...

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...

2 The North-South discussion paper series produced by the Wageningen UR North-South Centre is a working paper series that aims at stimulating debates on overarching development issues related to the Wageningen UR areas of nutrition and health, sustainable agrosystems, a viable environment and processes of social change. The papers introduce fresh insights into existing debates or present new pr...

oil prices may be having a direct and indirect effect through the exchange rate on the price of agricultural commodities. in this paper, the impact of world oil prices and exchange rate shocks on prices of specific agricultural commodities including wheat, corn, soybeans and sunflowers in iran is discussed. for this purpose, vector autoregressive model with monthly data over the period 2010-199...

the agricultural products’ market has always been faced with many structural problems such as marketing weakness, price fluctuations and inadequate infrastructure and transportation in iran. a major cause of such structural problems has been referred to the traditional and inefficient structure of the agricultural products’ market. hence, iran mercantile exchange started its activity since 2007...

Food commodity price fluctuations have an important impact on poverty and food insecurity across the world. Conventional models have not provided a complete picture of recent price spikes in agricultural commodity markets, while there is an urgent need for appropriate policy responses. Perhaps new approaches are needed in order to better understand international spill-overs, the feedback betwee...

INTRODUCTION: High and sustainable export growth, mainly driven by agricultural productivity, is critical for Zambia to reduce poverty and foster economic development. Despite the fact that, Zambia’s economic policies have for a long time emphasised export diversification, copper remains the main export commodity for Zambia. Coffee, an essential export commodity in most eastern African countrie...

The central part of pricing agricultural commodity futures options is to find appropriate stochastic process of the underlying assets. The Black’s (1976) futures option pricing model laid the foundation for a new era of futures option valuation theory. The geometric Brownian motion assumption girding the Black’s model, however, has been regarded as unrealistic in numerous empirical studies. Opt...