Agricultural supply response to international food prices and price volatility: a cross-country panel analysis

Mekbib Haile, Matthias Kalkuhl and Joachim von Braun

No 182725, 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia from European Association of Agricultural Economists

Abstract: 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.

Keywords: Demand and Price Analysis; International Relations/Trade (search for similar items in EconPapers)
Pages: 14
Date: 2014-08
New Economics Papers: this item is included in nep-agr
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Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Agricultural supply response to international food prices and price volatility: a crosscountry panel analysis (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae14:182725

DOI: 10.22004/ag.econ.182725

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