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A Critique of Exchange Rate Treatment in Agricultural Trade Models
Author(s) -
Chambers Robert G.,
Just Richard E.
Publication year - 1979
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1239729
Subject(s) - economics , exchange rate , agriculture , empirical research , work (physics) , econometrics , international economics , macroeconomics , mathematics , statistics , thermodynamics , ecology , physics , biology
The recent theoretical and empirical literature on the role of exchange rates in agricultural prices and trade is reviewed. Specifically, alternative specifications of the exchange rate in excess demand functions are considered. Results show that the specification most common in recent theoretical and empirical work is unnecessarily restrictive and may bias the resulting analysis. Several less restrictive specifications for empirical research are suggested.