MONETARY POLICIES, INTEREST RATES, AND U. S. AGRICULTURE: AN ECONOMETRIC SIMULATION ANALYSIS.

S. Devadoss, William H. Meyers

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

A large econometric model is developed to capture the economic relationship among the crop, livestock, and macro sectors through the interest rate linkage. The interest rate is endogenized with the money supply as an important explanatory variable. A nonlinear, three-stage least square technique is used to estimate the parameters, and the Gauss-Seidel solution method is used for the dynamic simulation analysis. Results indicate that a three percent decrease in the money supply growth has a significant impact on the farm sector through the interest rate.

Original languageEnglish
Title of host publicationModeling and Simulation, Proceedings of the Annual Pittsburgh Conference
EditorsRobert Hanham, William G. Vogt, Marlin H. Mickle, M.A. Aburdene, R.D. Green, H.Q. Lu, A. Rose, S. Ak, C. Gubala, V.P. Lukic, H.A. Ryaciotaki-Boussalis
PublisherISA
Pages383-387
Number of pages5
Editionpt 1
ISBN (Print)0876649681
StatePublished - 1986

Publication series

NameModeling and Simulation, Proceedings of the Annual Pittsburgh Conference
Numberpt 1
Volume17

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