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The Effect of Quality on Corn Export Price Determination
Author(s) -
Mercier Stephanie,
Lyford Conrad,
Oliveira Valencia
Publication year - 1994
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.2307/1349466
Subject(s) - quality (philosophy) , agricultural economics , economics , international economics , epistemology , philosophy
This article examines export price formation for U.S. corn exports, adopting the hedonic approach of treating a commodity as a bundle of identifiable quality attributes for which separate implicit prices can be estimated. The study makes use of a rich data set which includes transaction‐level price and quality data for U.S. corn exports for a period of two years. Significant implicit valuations for key quality factors between corn importers for feed use and corn importers for food and industrial uses are found, suggesting that the different end‐uses substantially affect how users contract for corn imports.