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Price Relationships (price + relationships)
Selected AbstractsOutput/Endowment and Commodity/Factor Price Relationships and Welfare in a Multilateral Trade Model with Partial Factor MobilityPACIFIC ECONOMIC REVIEW, Issue 3 2000Bharat R. Hazari A multilateral model of trade with both commodity flows and partial mobility of factor flows is set up. This model is used to develop factor endowment/output relationships as well as commodity/factor price relationships. Welfare consequences of these parametric shifts are examined. The model is built on the customs union framework which involves three countries and both commodity and factor flows. Owing to spillover effects in multilateral trade models, many nontraditional results are obtained. Many developed countries accept skilled and unskilled migrants from other countries. These migrants are generally accepted on a quota system. Moreover, it has been established that an increase in the migrant quota in the presence of factor mobility may raise or lower the output and welfare in the country not receiving migrants. In fact it is shown that the non-migrant receiving country could be immiserized due to loss of capital. The main message of this paper is that in a multilateral trade framework there exist international spillover effects which must be taken into consideration in national policymaking. [source] Price Relationships in Processors' Input Market Areas: Testing Theories for Corn Prices Near Ethanol PlantsCANADIAN JOURNAL OF AGRICULTURAL ECONOMICS, Issue 2-3 2005Paul Gallagher This study examines corn pricing in the vicinity of processing plants. We develop and test several price-distance models for cargo, insurance and freight (CIF) plant pricing in the presence of varying degrees of exporter competition, and for discriminatory free-on-board (FOB) pricing at the farm. The price-distance functions describing spatial prices near processing plants all depend on local transport costs. But the pricing system (CIF or FOB) and the extent of local competition define the level and spatial rate of change in prices.Estimations of an empirical price-location function for Iowa during the spring of 2003 suggest that prices near the plants of four conventional businesses conform to the CIF pricing model. But prices near producer-owned firms or farmer cooperatives failed to show any statistically significant effect on nearby prices. One plant had a price-distance function that resembled FOB pricing. Cet article étudie la tarification du maïs aux environs des usines agro-alimentaire utilisant cette céréale. Nous développons et testons plusieurs modèles de tarification CIF en présence de different niveaux de pressions compétitive à l'exportation. Nous testons aussi l'existence d'une tarification discriminatoire FOB au niveau de l'exploitation agricole. Les fonctions distance-prix décrivant les distributions spatiales des prix aux environs des usines agro-alimentaire dépendent toutes des coûts de transport local. Cependant le système de tarification (CIF ou FOB) et l'intensité de la compétition locale définissent le niveau et la sensibilité des prix en fonction de la distance.Les estimations des fonctions empiriques prix-situation geographique dans l'Iowa durant le printemps 2003 suggèrent que les prix aux alentours de quatre producteurs agro-alimentaire sont conformes à un modèle de tarification CIF. En revanche, les prix pratiques près des cooperatives ou des usines possedées par les exploitants agricole ne semblent pas affectés par des tarifications particulières. Un plan possède cependant une fonction prix-distance dont la forme à une tarification FOB. [source] Price relationships in the Queensland barley marketAGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 2 2002V. Jyothi Gali Barley can be differentiated into feed and malting barley based on its end-use markets. Substitutability both in supply and in demand complicates analysis of price information in the barley market. This article examines the price linkages between feed and malting barley in the Queensland barley market using cointegration and error correction models. Malting barley prices respond to restore equilibrium relationships with corresponding feed barley prices in the long run, but not vice versa. Thus feed barley prices appear to be a leading indicator of malting barley prices. [JEL codes: L100, C22, N57.] © 2002 Wiley Periodicals, Inc. [source] Vertical price leadership: A cointegration analysisAGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 3 2002W. Erno Kuiper Here we detail a method to test whether or not retailers allow suppliers to set the wholesale price not only on the basis of the costs faced by the suppliers but also on the basis of consumer demand. Using standard theory, long-run price relationships between the stages in the channel are derived. Next, these static price relationships are imposed on a dynamic model to be tested for cointegration and long-run noncausality, embedding the hypotheses on vertical price leadership. To derive the testable implications of these hypotheses, we show that the common stochastic trend and long-run equilibrium error must explicitly be assigned to variables in the channel model. The model is particularly relevant for industries characterized by a low degree of product differentiation. An empirical application to two Dutch marketing channels for food products gives comprehensible results. [EconLit citations: C32, L12, Q11] © 2002 Wiley Periodicals, Inc. [source] A speculative bubble in commodity futures prices?AGRICULTURAL ECONOMICS, Issue 1 2010Cross-sectional evidence Commitment's of traders; Index funds; Commodity futures markets Abstract Recent accusations against speculators in general and long-only commodity index funds in particular include: increasing market volatility, distorting historical price relationships, and fueling a rapid increase and decrease in the level of commodity prices. Some researchers have argued that these market participants,through their impact on market prices,may have inadvertently prevented the efficient distribution of food aid to deserving groups. Certainly, this result,if substantiated,would counter the classical argument that speculators make prices more efficient and thus improve the economic efficiency of the food marketing system. Given the very important policy implications, it is crucial to develop a more thorough understanding of long-only index funds and their potential market impact. Here, we review the criticisms (and rebuttals) levied against (and for) commodity index funds in recent U.S. Congressional testimonies. Then, additional empirical evidence is added regarding cross-sectional market returns and the relative levels of long-only index fund participation in 12 commodity futures markets. The empirical results provide scant evidence that long-only index funds impact returns across commodity futures markets. [source] Price transmission in the Spanish bovine sector: the BSE effectAGRICULTURAL ECONOMICS, Issue 1 2010Islam Hassouneh Food scare; BSE crisis; Price transmission; Regime-switching Abstract A regime-switching vector error correction model is applied to monthly price data to assess the impact of Bovine Spongiform Encephalopathy (BSE) outbreaks on price relationships and patterns of transmission among farm and retail markets for bovines in Spain. To evaluate the degree to which price transmission is affected by BSE food scares, a BSE food scare index is developed and used to determine regime switching. Results suggest that BSE scares affect beef producers and retailers differently. Consumer prices are found to be weakly exogenous and not found to react to BSE scares, while producer prices are conversely adjusted. The magnitude of the adjustment is found to depend on the magnitude of the BSE scare. [source] Output/Endowment and Commodity/Factor Price Relationships and Welfare in a Multilateral Trade Model with Partial Factor MobilityPACIFIC ECONOMIC REVIEW, Issue 3 2000Bharat R. Hazari A multilateral model of trade with both commodity flows and partial mobility of factor flows is set up. This model is used to develop factor endowment/output relationships as well as commodity/factor price relationships. Welfare consequences of these parametric shifts are examined. The model is built on the customs union framework which involves three countries and both commodity and factor flows. Owing to spillover effects in multilateral trade models, many nontraditional results are obtained. Many developed countries accept skilled and unskilled migrants from other countries. These migrants are generally accepted on a quota system. Moreover, it has been established that an increase in the migrant quota in the presence of factor mobility may raise or lower the output and welfare in the country not receiving migrants. In fact it is shown that the non-migrant receiving country could be immiserized due to loss of capital. The main message of this paper is that in a multilateral trade framework there exist international spillover effects which must be taken into consideration in national policymaking. [source] DUALITY WITH SECTOR-SPECIFIC EXTERNALITIES UNDER SOCIAL CONSTANT RETURNS,THE JAPANESE ECONOMIC REVIEW, Issue 4 2006KAZUO NISHIMURA We develop dual approaches to quantity and price relationships of production in a general multisectoral model with sector-specific externalities. The production of each good exhibits socially constant returns to scale but privately decreasing returns. We find that the Stolper-Samuelson theorem holds for factor intensity ranking from the social perspective and that the Rybczynski theorem holds for factor intensity ranking from the private perspective. The price-output dual fails to hold in general. Moreover, we re-establish the Heckscher-Ohlin theorem in the two-sector case, as well as the factor endowment,factor price and price-output comparative statics in the high-dimension case under proper conditions. [source] | ||||||||||||||||||||||