EconPapers    
Economics at your fingertips  
 

The Dynamics of Supply: U.S. Corn and Soybeans in the Biofuel Era

Hyunseok Kim and GianCarlo Moschini ()

Center for Agricultural and Rural Development (CARD) Publications from Center for Agricultural and Rural Development (CARD) at Iowa State University

Abstract: We estimate U.S. corn and soybean supply responses by exploiting the large exogenous price variations associated with implementation of the Renewable Fuel Standard. We focus on recent years and on the twelve Midwestern states, and estimate a system of dynamic equations that is consistent with the role of crop rotation. Corn and soybean acreages respond more in the short run than in the long run. Cross-price elasticities of acreage responses are negative and fairly large in absolute value such that, when corn and soybean prices move together, the response of total acreage allocated to these two crops is extremely inelastic. Key Words: acreage response, biofuels, crop rotation, system of dynamic equations, yield response

Date: 2018-04
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.card.iastate.edu/products/publications/pdf/18wp579.pdf Full Text (application/pdf)
https://www.card.iastate.edu/products/publications/synopsis/?p=1273 Online Synopsis (text/html)

Related works:
Journal Article: The Dynamics of Supply: U.S. Corn and Soybeans in the Biofuel Era (2018) Downloads
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:ias:cpaper:18-wp579

Access Statistics for this paper

More papers in Center for Agricultural and Rural Development (CARD) Publications from Center for Agricultural and Rural Development (CARD) at Iowa State University Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2019-10-08
Handle: RePEc:ias:cpaper:18-wp579