IDEAS home Printed from https://ideas.repec.org/p/ags/aaea13/150491.html
   My bibliography  Save this paper

Investigating the Divergence in Wheat Prices

Author

Listed:
  • Arnade, Carlos Anthony
  • Vocke, Gary

Abstract

This study investigates whether importers of U.S. wheat form an integrated market or a series of segmented markets. Two market integration tests are applied: one based on equilibrium price relationships and one based on disequilibrium price relationships. With the exception of a few importers, both tests tend to agree. This study also seeks to explain the reasons for the wide divergence in prices paid by importers of U.S. wheat. We find that factors such as the class of wheat which is purchased and the size of annual purchases influence pricing. We also find that there continues to be large persistence difference in the prices paid by importers.

Suggested Citation

  • Arnade, Carlos Anthony & Vocke, Gary, 2013. "Investigating the Divergence in Wheat Prices," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150491, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:150491
    DOI: 10.22004/ag.econ.150491
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/150491/files/vockarnd.docx.bck.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.150491?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Carlos Arnade & Daniel Pick, 1999. "Alternative approach to measuring oligopoly power: a wheat market example," Applied Economics Letters, Taylor & Francis Journals, vol. 6(3), pages 195-197.
    2. Paul R. Johnson & Thomas Grennes & Marie Thursby, 1979. "Trade Models with Differentiated Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(1), pages 120-127.
    3. Carlos Arnade & Stefan Osborne, 2004. "Measurement and Testing for Equality of Foreign Price and Consumer Price Index Transmission in Russia," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 52(1), pages 107-125, March.
    4. Haley, Stephen L., 1995. "Product Differentiation in Wheat Trade Modeling," Technical Bulletins 156766, United States Department of Agriculture, Economic Research Service.
    5. Arnade, Carlos Anthony & Osborne, Stefan, 2001. "Measurement And Testing For Neutrality Of Foreign Price And Cpi Transmission In Russia," 2001 Annual meeting, August 5-8, Chicago, IL 20625, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gutierrez, Luciano & Piras, Francesco, 2014. "A global VAR model for the analysis of wheat export prices," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182723, European Association of Agricultural Economists.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lavoie, Nathalie, 2001. "Price Discrimination In The Context Of Vertical Differentiation: A Modeling Approach For Wheat Exports," 2001 Annual meeting, August 5-8, Chicago, IL 20603, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Balagtas, Joseph Valdes & Rickard, Bradley J. & Sumner, Daniel A., 2002. "Effects Of Proposed Trade Barriers For Milk Protein Concentrate And Casein Imports On The U.S. Dairy Industry," 2002 Annual meeting, July 28-31, Long Beach, CA 19730, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Kapuscinski, Cezary A. & Warr, Peter G., 1999. "Estimation of Armington elasticities: an application to the Philippines," Economic Modelling, Elsevier, vol. 16(2), pages 257-278, April.
    4. Lavoie, Nathalie, 2002. "Price Discrimination in the Context of Vertical Differentiation: An Application to Canadian Wheat Exports," Research Reports 25210, University of Connecticut, Food Marketing Policy Center.
    5. Antônio Donizette de Oliveira & Orlando Monteiro da Silva & José Luiz Pereira de Rezende, 1996. "Importação de celulose: demandas diferenciadas por local de origem," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 6(1), pages 165-194, July.
    6. Lee, Young-Jae & Kennedy, P. Lynn & Hilbun, Brian M., 2008. "Import Demand System Analysis Of The South Korean Wine Market With The Source Differentated Aids Model," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6345, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Yang, Seung-Ryong & Koo, Won W., 1994. "Japanese Meat Import Demand Estimation With The Source Differentiated Aids Model," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(2), pages 1-13, December.
    8. Pagoulatos, Emilio & Lopez, Elena, 1983. "A Model of Agricultural Trade for Differentiated Products," Staff Paper Series 239855, University of Florida, Food and Resource Economics Department.
    9. Liapis, Peter S., 1989. "Estimation and Evaluation of Economic Community Wheat Export Subsidies," Staff Reports 278253, United States Department of Agriculture, Economic Research Service.
    10. Denbaly, Massoud Said Mark, 1984. "U. S. monetary policy and the exchange rate: effects on the world coarse grain market," ISU General Staff Papers 198401010800008753, Iowa State University, Department of Economics.
    11. Svanidze, Miranda & Götz, Linde, 2019. "Determinants of spatial market efficiency of grain markets in Russia," Food Policy, Elsevier, vol. 89(C).
    12. Monke, Eric, 1981. "International Market Demand for Cotton: A Survey of the Literature," Working Papers 232851, University of California, Davis, Agricultural Development Systems: Egypt Project.
    13. Lavoie, Nathalie, 2002. "An Empirical Evaluation Of The Canadian Wheat Board'S Ability To Price Discriminate In Bread Wheat Exports," 2002 Annual meeting, July 28-31, Long Beach, CA 19646, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    14. Leetmaa, Susan E., 1997. "Effects of Market Reforms in the Former Soviet Union on World Grain Trade: Results From A Multi-Market Wheat Trade Model," 1997: Economic Transition in Central and East Europe, and the Former Soviet Union: Implications ... Symposium, June 12-14, 1997, Berlin, Germany 50843, International Agricultural Trade Research Consortium.
    15. F. G. Adams & J. R. Behrman & M. Lasaga, 1981. "Commodity Exports and NIEO Proposals for Buffer Stocks and Compensatory Finance: Implications for Latin America," NBER Chapters, in: Export Diversification and the New Protectionism: The Experiences of Latin America, pages 48-82, National Bureau of Economic Research, Inc.
    16. Liu, Zong-Shin, 1989. "Monetary policy, exchange rate, and effects on US wheat trade and domestic market in an imperfect competition framework," ISU General Staff Papers 1989010108000010216, Iowa State University, Department of Economics.
    17. D. MacLaren, 1991. "Agricultural Trade Policy Analysis And International Trade Theory: A Review Of Recent Developments," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(3), pages 250-297, September.
    18. Samarendu Mohanty & Suchada Langley, 2003. "The Effects of Various Policy Regimes in the Integration of North American Grain Markets," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 51(1), pages 109-120, March.
    19. Jaouad, Mohamed, 1994. "An agricultural policy and trade model for Morocco," ISU General Staff Papers 1994010108000011483, Iowa State University, Department of Economics.
    20. Miller, Andrew D. & Langley, Suchada V. & Chambers, William, 2003. "Current Issues Affecting Trade And Trade Policy: An Annotated Literature Review," Working Papers 14596, International Agricultural Trade Research Consortium.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea13:150491. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.