The relationship between trade and price volatility in the Mexican and US maize markets

Sergio Rene Araujo-Enciso
Authors registered in the RePEc Author Service: Sergio René Araujo Enciso

No 122544, 123rd Seminar, February 23-24, 2012, Dublin, Ireland from European Association of Agricultural Economists

Abstract: The supply of maize in the Mexican market depends to a large extent from the US imports which represent a large share of the domestic consumption. Furthermore imports exhibit a seasonal pattern, and peaks are often found close to low levels of domestic production and stocks. The present research suggests that there is a link between imports and prices volatility. Below a threshold value, imports and volatility are not related, but beyond the threshold it is volatility the variable driving imports. From the results one can argue that imports have served as a measure to stabilize prices when the domestic supply is scarce.

Keywords: Risk; and; Uncertainty (search for similar items in EconPapers)
Pages: 12
Date: 2012-02-23
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/122544/files/araujo-enciso_1.pdf (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: https://EconPapers.repec.org/RePEc:ags:eaa123:122544

DOI: 10.22004/ag.econ.122544

Access Statistics for this paper

More papers in 123rd Seminar, February 23-24, 2012, Dublin, Ireland from European Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().