INFLUENCES OF THE GOVERNMENTAL MARKET INTERVENTIONS ON WHEAT MARKETS IN SERBIA DURING THE FOOD CRISIS 2007/2008
Linde Goetz and
Thomas Glauben ()
Authors registered in the RePEc Author Service: Linde Götz ()
No 114438, 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland from European Association of Agricultural Economists
This paper analyzes how the market interventions of the Serbian government during the food crisis 2007/2008, inter alia a de facto export ban, have affected domestic wheat markets. Besides a comprehensive description of the crisis policy and its effects on the Serbian wheat market, we investigate how it influences the equilibrium and stability of the Serbian wheat market and its integration with the world market within a price transmission model. Applying a Markov-switching error correction model to weekly wheat grower prices in Serbia and world market prices, two states of the wheat market are identified. Our results suggest that although the long-run price elasticity did not change during the crisis, the market equilibrium was disrupted and the market stability reduced. Also, we find that the price dampening effect of the export restrictions was only short-lived, and that Serbian wheat grower prices even increased above the world market level.
Keywords: Agricultural and Food Policy; Crop Production/Industries (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae11:114438
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