Eastham's Commodity Storage Model in a Modern Context

Posted: 23 Sep 2009

See all articles by Colin A. Carter

Colin A. Carter

University of California, Davis - Department of Agricultural and Resource Economics

Cesar L. Revoredo-Giha

affiliation not provided to SSRN

Abstract

This paper revives the seminal work of Jack Kenneth (J.K.) Eastham, an economist from the Dundee School of Economics, who in the 1930s wrote on the theoretical aspects of storable commodity markets. First, we present Eastham's contribution and show that despite using a graphical analysis, Eastham's model anticipated the modern competitive storage model (e.g., the presence of speculative stockholders acting as arbitrageurs and the shape of the aggregate commodity demand curve). Second, we explore the writings that may have influenced Eastham in the formulation of his model, by considering contributions of Wicksteed, through the influence of the London School of Economics; Keynes; and economists from the United States such as Mordecai Ezekiel and John Williams. Finally, our paper explores possible reasons why Eastham's contribution on storable commodity markets was overlooked in the subsequent literature.

JEL Classification: B21, B31, D40, D41

Suggested Citation

Carter, Colin A. and Revoredo-Giha, Cesar L., Eastham's Commodity Storage Model in a Modern Context. Oxford Economic Papers, Vol. 61, No. 4, pp. 801-822, 2009. Available at SSRN: https://ssrn.com/abstract=1477241 or http://dx.doi.org/gpp007

Colin A. Carter (Contact Author)

University of California, Davis - Department of Agricultural and Resource Economics ( email )

One Shields Avenue
Davis, CA 95616
United States

Cesar L. Revoredo-Giha

affiliation not provided to SSRN

No Address Available

Register to save articles to
your library

Register

Paper statistics

Abstract Views
340
PlumX Metrics