This study examines the empirical implications of extending the rational expectations hypothesis (REH) to include price uncertainty. Unlike previous studies, a general estimation framework that incorporates both the restrictions on structural parameters and the variance-covariance terms is...

Price expectations are an integral part of agricultural decision making. Despite recognition of this fact, few changes have been made during the past two decades in the way price expectations appear in agricultural models. For example, the majority of existing supply response studies has assumed...

Various measures have been proposed to "harmonize" agricultural policies in the United States and the European Community. Short-run and long-run consequences of implementing three such measures are evaluated using econometric models developed by the Food and Agricultural Policy Research...

The effects of exchange rate and capital stock changes are analyzed using a CGE model for the United States. The model is in the Walrasion tradition and is calibrated to 1982 data. Results indicate that a devaluation of the U.S. dollar has a positive effect on the agricultural sector and balance...

An econometrically estimated model is used to project the impact of the 1985 dairy program on the dairy industry and government costs. Projections indicate that a whole-herd buyout program could be an effective way of reducing the excess supply of milk while maintaining dairy income and reducing...

Traditional time series models assume a constant conditional variance. Realizing the implausibility of this assumption, Bollerslev proposed Generalized Autoregressive Conditional Heteroscedasticity (GARSH) processes, which are characterized by nonconstant conditional variances. In this paper,...

This paper investigates whether a small country facing foreign price instability benefits from active stabilization of the domestic price of the importable. For example, the European Community can be treated as a small open economy facing price instability of agricultural products originating in...

This paper analyzes the incidence of agricultural commodity programs. Producers advocate commodity programs and receive price subsidies, but free entry and perfectly elastic supplies of nonland inputs ensure that landowners extract the entire surplus from price subsidies. Moreover, an increase...

In contrast to some trade theorists' long-held beliefs, this study shows that free trade reduces the welfare of a small country with unemployment unless the free trade price of the importable falls below the autarky equivalent price. This study formulates a disequilibrium trade model with sticky...

Price stabilization is an important policy goal of government intervention in competitive markets. These policies are primarily directed at raising producer income and stabilizing market prices at levels acceptable to consumers and producers (Fox 1956, Turnovsky 1978, Newbery and Stiglitz 1979)....