Agricultural supply response to international food prices and price volatility: a crosscountry panel analysis
This article estimates global supply response for key agricultural commodities. The findings reveal that, while higher output prices are incentives to improve global crop supply, output price volatility plays otherwise. Depending on respective crop, the results indicate that own price supply elasticities range from about 0.05 to 0.35. The findings suggest that output price-risk has negative correlations with crop supply, implying that farmers shift land, other inputs and yield improving investments away to crops with less volatile prices. The recent output price volatility seems to significantly reduce production of wheat and – to a lesser extent – rice.
(This abstract was borrowed from another version of this item.)
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David Roodman, 2006.
"How to Do xtabond2: An Introduction to "Difference" and "System" GMM in Stata,"
103, Center for Global Development.
- David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LP, vol. 9(1), pages 86-136, March.
- Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-26, November.
- Moschini, GianCarlo & Hennessy, David A., 2001.
"Uncertainty, Risk Aversion, and Risk Management for Agricultural Producers,"
Staff General Research Papers
5323, Iowa State University, Department of Economics.
- Moschini, Giancarlo & Hennessy, David A., 2001. "Uncertainty, risk aversion, and risk management for agricultural producers," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 2, pages 88-153 Elsevier.
- Hertel, Thomas W., 2010.
"The Global Supply and Demand for Agricultural Land in 2050: A Perfect Storm in the Making?,"
2010 Annual Meeting, July 25-27, 2010, Denver, Colorado
92639, Agricultural and Applied Economics Association.
- Hertel, Thomas W., 2011. "The Global Supply and Demand for Agricultural Land in 2050: A Perfect Storm in the Making?," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 100557, Australian Agricultural and Resource Economics Society.
- Blundell, Richard & Bond, Stephen, 1998.
"Initial conditions and moment restrictions in dynamic panel data models,"
Journal of Econometrics,
Elsevier, vol. 87(1), pages 115-143, August.
- R Blundell & Steven Bond, . "Initial conditions and moment restrictions in dynamic panel data model," Economics Papers W14&104., Economics Group, Nuffield College, University of Oxford.
- Richard Blundell & Steve Bond, 1995. "Initial conditions and moment restrictions in dynamic panel data models," IFS Working Papers W95/17, Institute for Fiscal Studies.
- Blundell, R. & Bond, S., 1995. "Initial Conditions and Moment Restrictions in Dynamic Panel Data Models," Economics Papers 104, Economics Group, Nuffield College, University of Oxford.
- Braulke, Michael, 1982. "A Note on the Nerlove Model of Agricultural Supply Response," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 23(1), pages 241-44, February.
- Windmeijer, Frank, 2005. "A finite sample correction for the variance of linear efficient two-step GMM estimators," Journal of Econometrics, Elsevier, vol. 126(1), pages 25-51, May.
- Beddow, Jason M. & Pardey, Philip G. & Alston, Julian M., 2009. "The Shifting Global Patterns of Agricultural Productivity," Choices, Agricultural and Applied Economics Association, vol. 24(4).
- Sandmo, Agnar, 1971. "On the Theory of the Competitive Firm under Price Uncertainty," American Economic Review, American Economic Association, vol. 61(1), pages 65-73, March.
- William Lin & Robert Dismukes, 2007. "Supply Response under Risk: Implications for Counter-Cyclical Payments' Production Impact," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(1), pages 64-86.
- Christopher Gilbert & Wyn Morgan, 2010. "Has food price volatility risen?," Department of Economics Working Papers 1002, Department of Economics, University of Trento, Italia.
- Catherine Hausman, 2012. "Biofuels and Land Use Change: Sugarcane and Soybean Acreage Response in Brazil," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 51(2), pages 163-187, February.
- Miranda, Mario J & Helmberger, Peter G, 1988. "The Effects of Commodity Price Stabilization Programs," American Economic Review, American Economic Association, vol. 78(1), pages 46-58, March.
- Haile, Mekbib G. & Kalkuhl, Matthias & von Braun, Joachim, 2013. "Short-term global crop acreage response to international food prices and implications of volatility," Discussion Papers 145308, University of Bonn, Center for Development Research (ZEF).
- Just, Richard E. & Pope, Rulon D., 2001. "The agricultural producer: Theory and statistical measurement," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 12, pages 629-741 Elsevier.
- David Roodman, 2007.
"A Note on the Theme of Too Many Instruments,"
125, Center for Global Development.
- Manuel Arellano & Stephen Bond, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Oxford University Press, vol. 58(2), pages 277-297.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- Michael J. Roberts & Wolfram Schlenker, 2013.
"Identifying Supply and Demand Elasticities of Agricultural Commodities: Implications for the US Ethanol Mandate,"
American Economic Review,
American Economic Association, vol. 103(6), pages 2265-95, October.
- Michael J. Roberts & Wolfram Schlenker, 2010. "Identifying Supply and Demand Elasticities of Agricultural Commodities: Implications for the US Ethanol Mandate," NBER Working Papers 15921, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:ags:aaea13:149630. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.