Funke, Norbert; Wu, Weifeng; Miao, Yanliang - International Monetary Fund (IMF) - 2011
commodity prices. We augment the seminal Deaton and Laroque (1992, 1996) model by incorporating more comprehensive and realistic … computational burden increases exponentially, the augmented model succeeds in replicating all four key patterns of food commodity … prices. Our simulation and comparative statics also show that (i) the long-run declining trend of food prices may come to a …