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A Market Equilibrium Analysis of the Impact of Risk on the U.S. Rice Industry
Author(s) -
Brorsen B. Wade,
Chavas JeanPaul,
Grant Warren R.
Publication year - 1987
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 - 10.2307/1242182
Subject(s) - production (economics) , context (archaeology) , economics , supply and demand , partial equilibrium , business , agricultural economics , general equilibrium theory , microeconomics , paleontology , biology
An economic model of supply/demand for U.S. rice suggests that increases in risk result in decreased acreage and increased marketing margins. In a market equilibrium context, the empirical results also suggest rice production and rice prices are more responsive to changes in risk faced by marketing firms than changes in risk faced by producing firms.