On the Dynamic Relationship between U.S. Farm Income and Macroeconomic Variables

Jungho Baek and Won W. Koo

Journal of Agricultural and Applied Economics, 2009, vol. 41, issue 02

Abstract: This study examines the short- and long-run effects of changes in macroeconomic variables—agricultural commodity prices, interest rates and exchange rates—on the U.S. farm income. For this purpose, we adopt an autoregressive distributed lag (ARDL) approach to cointegration with quarterly data for 1989–2008. Results show that the exchange rate plays a crucial role in determining the long-run behavior of U.S. farm income, but has little effect in the short-run. We also find that the commodity price and interest rate have been significant determinants of U.S. farm income in both the short- and long-run over the past two decades.

Keywords: autoregressive distributed lag model; commodity price; exchange rate; farm income; interest rate; long-run; short-run; Agribusiness; Consumer/Household Economics; Farm Management; Financial Economics; C22; E23; Q11 (search for similar items in EconPapers)
Date: 2009

Downloads: (external link)
http://purl.umn.edu/53097 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:ags:joaaec:53097

Access Statistics for this article

More articles in Journal of Agricultural and Applied Economics from Southern Agricultural Economics Association
Contact information at EDIRC.
Series data maintained by AgEcon Search ().