Considering Macroeconomic Indicators in the Food versus Fuel Issues
Cheng Qiu,
Gregory Colson and
Michael E. Wetzstein
No 103689, 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania from Agricultural and Applied Economics Association
Abstract:
In this study, a Structural Vector Autoregression model (SVAR) is employed to decompose how supply/demand structural shocks affect food and fuel prices within fuel and corn markets. Results indicate that the relative importance of each structural shock in explaining the variation of corn prices is different. Our findings support the hypothesis that corn prices increase as a response to those positive demand shocks in the short run, while in the long run, global competitive agricultural commodities markets as well as positive supply shocks respond to commodity price shocks, restoring prices to its long-run trends. In conclusion, fundamental market forces of demand and supply as well as real economic aggregated demand shocks were the main contributors of the 2007-2008 food price spike.
Keywords: Food Consumption/Nutrition/Food Safety; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 33
Date: 2011
New Economics Papers: this item is included in nep-ene and nep-mac
References: Add references at CitEc
Citations:
Downloads: (external link)
https://ageconsearch.umn.edu/record/103689/files/Cheng%20Qiu%202010-05-03.pdf (application/pdf)
Related works:
Journal Article: Considering macroeconomic indicators in the food before fuel nexus (2012) 
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: https://EconPapers.repec.org/RePEc:ags:aaea11:103689
DOI: 10.22004/ag.econ.103689
Access Statistics for this paper
More papers in 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().