Measuring Foreign Supply Response to Changes in U.S. Prices: An Argentine Example

dc.contributor.author Westhoff, Patrick
dc.contributor.department Center for Agricultural and Rural Development
dc.date 2018-02-16T00:53:36.000
dc.date.accessioned 2020-06-30T01:05:00Z
dc.date.available 2020-06-30T01:05:00Z
dc.date.copyright Wed Jan 01 00:00:00 UTC 1986
dc.date.embargo 2015-03-22
dc.date.issued 1986-05-01
dc.description.abstract <p>The paper proposes a method to measure foreign supply response to changes in U.S. prices and applies the method to Argentine field crops. Argentine export taxes and marketing margins are endogenized, and price transmission elasticities are calculated. Total area harvested is a function of weighted farm prices, and crop shares are a function of relative prices.</p> <p>One important concern during the course of debate on the 1985 Farm Bill was how farmers in other countries were likely to respond to changes in U.S. Policies. Those arguing for policies which would reduce commodity prices contended that lower prices would be a major disincentive to foreign production. On the other hand, those favoring price-increasing policies contended that little additional foreign production was likely to result from higher prices.</p> <p>This paper will outline a method to measure foreign supply response to changes in U.S. commodity prices, and the approach will be applied to the case of Argentine field crops. It will be argued that the proper measurement of foreign supply response requires consideration of the likely response o foreign governments, traders and farmers to changes in world prices. The model developed here links U.s. and Argentine farm prices, and allows for cross-commodity effects.</p>
dc.identifier archive/lib.dr.iastate.edu/card_workingpapers/46/
dc.identifier.articleid 1035
dc.identifier.contextkey 6881326
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath card_workingpapers/46
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/12809
dc.source.bitstream archive/lib.dr.iastate.edu/card_workingpapers/46/86wp9.pdf|||Sat Jan 15 00:22:15 UTC 2022
dc.subject.disciplines Agricultural and Resource Economics
dc.subject.disciplines Agricultural Economics
dc.subject.disciplines International Economics
dc.title Measuring Foreign Supply Response to Changes in U.S. Prices: An Argentine Example
dc.type article
dc.type.genre article
dspace.entity.type Publication
relation.isOrgUnitOfPublication 1a6be5f1-4f64-4e48-bb66-03bbcc25c76d
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