TY - JOUR
T1 - Variability in wheat export demand elasticity
T2 - policy implications
AU - Devadoss, S.
AU - Meyers, William H.
N1 - Funding Information:
The modeli ncludesd omestics upplya nd demandf unctionsf or major trading and producingc ountriesa nd regions.T he countrieso r regionsi ncluded in this study are the United States,C anada,A ustralia,A rgentina,t he European Community (E&12), India, Japan, China, the U.S.S.R., EasternE u-rope, Africa and the Middle East, other Asia, high-incomeA sia, other Western Europe,a nd the resto f the world (ROW ) .
PY - 1990/12
Y1 - 1990/12
N2 - Agricultural economists and policy makers in the United States believe that the magnitude of the export demand elasticity is one of the most important parameters used in farm policy decisions. However, past empirical estimates show wide variation in the size of the U.S. export demand elasticity. Reasons for this wide variation go beyond differences in model specification, estimation methods, and period of estimation to involve factors such as trade policies and changes in the supply and demand conditions of foreign countries. In view of the continual variation in magnitude, the elasticity of export demand should be viewed as a variable rather than as a parameter. In this study, U.S. wheat export demand elasticities are computed using a world wheat trade model. The estimates show that the elasticities vary significantly over time. They also reveal that elimination of trade barriers would more than double wheat export demand elasticities.
AB - Agricultural economists and policy makers in the United States believe that the magnitude of the export demand elasticity is one of the most important parameters used in farm policy decisions. However, past empirical estimates show wide variation in the size of the U.S. export demand elasticity. Reasons for this wide variation go beyond differences in model specification, estimation methods, and period of estimation to involve factors such as trade policies and changes in the supply and demand conditions of foreign countries. In view of the continual variation in magnitude, the elasticity of export demand should be viewed as a variable rather than as a parameter. In this study, U.S. wheat export demand elasticities are computed using a world wheat trade model. The estimates show that the elasticities vary significantly over time. They also reveal that elimination of trade barriers would more than double wheat export demand elasticities.
UR - http://www.scopus.com/inward/record.url?scp=38249018303&partnerID=8YFLogxK
U2 - 10.1016/0169-5150(90)90012-P
DO - 10.1016/0169-5150(90)90012-P
M3 - Article
AN - SCOPUS:38249018303
SN - 0169-5150
VL - 4
SP - 381
EP - 394
JO - Agricultural Economics
JF - Agricultural Economics
IS - 3-4
ER -