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The long-run impact of energy prices on world agricultural markets: The role of macro-economic linkages

  • Gohin, A.
  • Chantret, F.
Registered author(s):

    The world prices of some food and energy products have followed similar large swings in recent years. We investigate the long-run relationship between these prices using a world Computable General Equilibrium model with detailed representations of food and energy markets. Particular attention is paid to specifying macro-economic linkages which have often been overlooked in recent analysis and debate. We find that the omission of these macro-economic linkages has a substantial bearing on this relationship. A positive relationship due to the cost push effect has been identified in most analysis, but we find that the introduction of the real income effect may indeed imply a negative relationship between world food and energy prices.

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    File URL: http://www.sciencedirect.com/science/article/B6V2W-4XG3DF7-2/2/72a8a4d309b3278c8e55096d6979401b
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    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 38 (2010)
    Issue (Month): 1 (January)
    Pages: 333-339

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    Handle: RePEc:eee:enepol:v:38:y:2010:i:1:p:333-339
    Contact details of provider: Web page: http://www.elsevier.com/locate/enpol

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