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- W1489402003 abstract "This paper aims at considering policy regimes while studying international price transmis sion mechanisms. The focus is on the soft wheat market between the United States and the European Union in the years 1978-2003. EU domestic and border policies are expected to play a strong role; a theoretical framework is developed in which the basic idea is t hat the intervention price acts as a threshold above wh ich the EU and the US price can interact. A composite variable, equal to the maximum between the intervention and the US price, is then introduced i n a cointegration model and its relation with the EU pr ice is studied. In addition to this, other models are esti mated, in which the adjustment coefficients and the parameters of the cointegrating vector are allowed to vary acc ording to the policy regime in place. All models yield con sistent results. The EU price reaction to the long run rela tions suggests that the role of the US price can be under stood only if policy regimes are adequately accounted for . To which extent the US price adjusts to disequilibria requires further research." @default.
- W1489402003 created "2016-06-24" @default.
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- W1489402003 date "2008-01-01" @default.
- W1489402003 modified "2023-09-27" @default.
- W1489402003 title "International price transmission on soft wheat markets: which role for policy variables in cointegration relationships?" @default.
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