Wheat Storage and Trade in an Efficient Global Market

12 Pages Posted: 25 Mar 2020

See all articles by Shiva Makki

Shiva Makki

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics

Luther Tweeten

affiliation not provided to SSRN

Mario Miranda

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics

Date Written: November 1996

Abstract

Domestic and international linkages in speculative stockholdings and trade of wheat are analyzed using a dynamic rational expectations model of the world wheat market dominated by the U.S. and the EU. The results demonstrate the importance of endogenizing both storage and trade in studying commodity markets and suggest that past government stockholdings have not followed efficient market outcomes. Results indicate that elimination of the Export Enhancement Program by the U.S. and of export restitution payments by the EU are unlikely to have a major impact on wheat exports from the two regions but will save millions of tax dollars in both regions.

Keywords: export subsidy, speculative stockholdings, trade, world wheat market, Q130, Q170

Suggested Citation

Makki, Shiva and Tweeten, Luther and Miranda, Mario, Wheat Storage and Trade in an Efficient Global Market (November 1996). American Journal of Agricultural Economics, Vol. 78, Issue 4, pp. 879-890, 1996, Available at SSRN: https://ssrn.com/abstract=3560430 or http://dx.doi.org/10.2307/1243845

Shiva Makki (Contact Author)

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics ( email )

2120 Fyffe Rd
Columbus, OH 43210-1067
United States

Luther Tweeten

affiliation not provided to SSRN

Mario Miranda

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics ( email )

2120 Fyffe Rd
Columbus, OH 43210-1067
United States

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