A Nonlinear Cobweb Model of Agricultural Commodity Price Fluctuations

Sophie Mitra () and Jean-Marc BOUSSARD ()

Fordham Economics Discussion Paper Series from Fordham University, Department of Economics

Abstract: Recent developments in world food markets stress the importance of identifying the sources of food price volatility. This paper develops a nonlinear Cobweb model with endogenous volatility which accounts for several characteristics of agricultural commodity markets (seasonality, storage) and leads to price series with positive skewness and autocorrelation, as in actual commodity prices. Practical consequences may imply a rethinking of the current methods of world food market regulation.

Keywords: Agricultural prices; nonlinear Cobweb model; endogenous fluctuations; storage (search for similar items in EconPapers)
JEL-codes: Q11 E39 D84 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr, nep-ifn and nep-mac
Date: 2008
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Persistent link: http://EconPapers.repec.org/RePEc:frd:wpaper:dp2008-11

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