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Pricing and Storage of Field Crops: A Quarterly Model Applied to Soybeans
Author(s) -
Lowry Mark,
Glauber Joseph,
Miranda Mario,
Helmberger Peter
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 - 10.2307/1242183
Subject(s) - allocative efficiency , rational expectations , economics , econometrics , econometric model , field (mathematics) , microeconomics , agricultural economics , mathematics , pure mathematics
This paper considers the role of competitive storage in markets for annually harvested field crops. A quarterly model is presented that considers the allocative role of storage both within and between crop years. Rational price expectations are endogenous variables calculated by a recursive method. Forward stochastic simulations using the model generate data that can be used to characterize the distributions of the variables. In the base case, the model is assigned parameter values from a quarterly econometric model of the U.S. soybean market. The results shed light on the distributions of the quarterly variables, including the rational price expectations, and show how these distributions are affected by changes in the carrying charge.