Export Restrictions and Multiple Spatial Price Equilibria: Export Quotas for Wheat in Ukraine

Linde Götz (), Feng Qiu, Jean-Philippe Gervais () and Thomas Glauben

No 156135, 53rd Annual Conference, Berlin, Germany, September 25-27, 2013 from German Association of Agricultural Economists (GEWISOLA)

Abstract: Relatively few models exist that allow for regime-dependent spatial price equilibria. This paper focuses on temporary export restrictions during international commodity price peaks. Theory suggests that export restrictions have price insulating effects and lead to multiple spatial equilibria between domestic and world market prices. Our analysis is unique in that it tests for linear versus non-linear cointegration within a smooth transition cointegration model. Applying this model to the wheat export quota in Ukraine shows that the domestic wheat price was stabilised approximately 30% below the international wheat price during the two recent price spikes. From a global point of view, the domestic wheat price in Ukraine would have increased to the same degree if no country had engaged in price insulating behaviour worldwide from 2006 to 2008.

Keywords: Agricultural and Food Policy; Food Security and Poverty (search for similar items in EconPapers)
Pages: 15
Date: 2013
New Economics Papers: this item is included in nep-agr and nep-eur
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://ageconsearch.umn.edu/record/156135/files/B1-Goetz-Export_c.pdf (application/pdf)

Related works:
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:ags:gewi13:156135

DOI: 10.22004/ag.econ.156135

Access Statistics for this paper

More papers in 53rd Annual Conference, Berlin, Germany, September 25-27, 2013 from German Association of Agricultural Economists (GEWISOLA) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().