Storage and the Volatility of Agricultural Prices: A Model of Endogenous 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: D84 E39 Q11 (search for similar items in EconPapers)
Date: 2008
New Economics Papers: this item is included in nep-agr and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:frd:wpaper:dp2008-11

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