IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

International price transmission on soft wheat markets: which role for policy variables in cointegration relationships?

Listed author(s):
  • Listorti, Giulia
Registered author(s):

    This paper aims at considering policy regimes while studying international price transmission mechanisms. The focus is on the soft wheat market between the United States and the European Union in the years 1978-2003. EU domestic and border policies are expected to play a strong role; a theoretical framework is developed in which the basic idea is that the intervention price acts as a threshold above which the EU and the US price can interact. A composite variable, equal to the maximum between the intervention and the US price, is then introduced in a cointegration model and its relation with the EU price is studied. In addition to this, other models are estimated, in which the adjustment coefficients and the parameters of the cointegrating vector are allowed to vary according to the policy regime in place. All models yield consistent results. The EU price reaction to the long run relations suggests that the role of the US price can be understood only if policy regimes are adequately accounted for. To which extent the US price adjusts to disequilibria requires further research.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Paper provided by European Association of Agricultural Economists in its series 2008 International Congress, August 26-29, 2008, Ghent, Belgium with number 43843.

    in new window

    Date of creation: 2008
    Handle: RePEc:ags:eaae08:43843
    Contact details of provider: Web page:

    More information through EDIRC

    References listed on IDEAS
    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.:

    in new window

    1. Dragan Miljkovic, 1999. "The Law of One Price in International Trade: A Critical Review," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 21(1), pages 126-139.
    2. Thompson, Stanley R. & Bohl, Martin T., 1999. "International Wheat Price Transmission And Cap Reform," 1999 Annual meeting, August 8-11, Nashville, TN 21705, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Christopher B. Barrett, 1996. "Market Analysis Methods: Are Our Enriched Toolkits Well Suited to Enlivened Markets?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 825-829.
    4. Fackler, Paul L. & Goodwin, Barry K., 2001. "Spatial price analysis," Handbook of Agricultural Economics,in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 17, pages 971-1024 Elsevier.
    5. Christopher B. Barrett & Jau Rong Li, 2002. "Distinguishing between Equilibrium and Integration in Spatial Price Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(2), pages 292-307.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ags:eaae08:43843. 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 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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.