Market Power and World Price: The Role of Asian Rice Exporters

An attempt has been made in this study to assess the market power of major Asian exporters in world rice market using standard oligopoly models. Quantity has been used as the strategic variable based on previous literature. Structural and reduced form approaches have been used. Results indicate that the major Asian rice exporters like Thailand, China, and India face a downward sloping demand curve whereas the United States does not appear to possess market power. However, the results are inconclusive about the precise market structure. The results, in the backdrop of the history of world rice markets, indicate a need for Asian exporters to rely more on trade than on domestic stocks in order to reduce the thinness of world rice market.     

中国大米市场价格共因子分析

内容提要:本文利用持续—短暂模型(permanent-transitory model,简写为p-t模型)分粳米和籼米对中国大米市场价格共因子进行了分析。研究发现,在中国粳米市场价格长期行为的形成过程中,湖北、天津、黑龙江、吉林、浙江和江苏的影响比较大,其中,浙江起主导作用;在中国籼米市场价格长期行为的形成过程中,广西、湖北、湖南、江西、四川和浙江的影响比较大,其中,江西起主导作用。在决策过程中,决策者应重点考虑对影响较大的地区采取有针对性的措施。     

Black Sea and World Wheat Market Price Integration Analysis

In 2008–10, Russia and Ukraine together exported an average of 29 million tons of wheat per year, and have become important players in the international wheat market. This research summarizes the short‐ and long‐run wheat price dynamics between Ukraine and Russia, and other major wheat exporters—the United States, European Union (EU), and Canada—from 2004 to 2010. Tests of market price co‐integration (Johansen maximum likelihood test and residual‐based tests) as well as threshold error correction techniques were performed for this purpose. The results suggest that Russian wheat prices were co‐integrated with EU and U.S. wheat prices but not with Canadian wheat prices. Ukrainian wheat prices were found to be co‐integrated with French wheat prices only. The estimated long‐run wheat price transmission elasticities were estimated to be equal to 1.04 between Russian and French (a representative country of the EU) wheat prices, 1.16 between Russian and U.S. wheat prices, and 1.05 between Ukrainian and French wheat prices. We also found the short‐term relationships between the co‐integrated series to be statistically significant. Price adjustments in all co‐integrated prices were found to be symmetric.     

Influence of Trade Policies on Price Integration in the World Beef Market

The article develops three hypotheses about how policy interventions in major trading nations influence price integration in the world beef market. Simple correlation coefficients, tests for significant differences between coefficients, and Granger causality tests are used to test the hypotheses. First, segmentation between prices in Foot and Mouth Disease (FMD)-free and FMD-endemic countries is found, but it is much less than previously assumed. Second, European Community policies that closed the E.C. import market have isolated prices in the E.C. from other markets. These policies also led to greater integration among prices in FMD-free and FMD-endemic market segments by forcing exporters from both segments to compete directly in new import markets. Third, the U.S.A. is found to be the price leader in world beef markets, due not only to market size, but also to U.S. policies that allow transmission of price information from the U.S. market to the world market but not vice versa.     

The Influence of Commodity Programs on Acreage Response to Market Price: With an Illustration Concerning Rice Policy in the United States

Farm programs influence the parameters of typically estimated supply functions. We develop and apply an approach that uses detailed information about farm program incentives and constraints to identify underlying structural acreage response parameters when the data reflect behavior under complex government commodity programs. We illustrate the approach with data on rice acreage response to market price in the United States. For U.S. rice, estimates that fail to appropriately incorporate the program rules under which market data were generated are three to four times smaller than the structural parameters that are useful for most policy analysis or projections under alternative policies.     

The Variable Response of Agricultural Supply to World Price Instability in Developing Countries

This paper analyses the effect of world price instability on the agricultural supply from developing countries and determines to what extent this effect is dependent upon the macroeconomic environment. Producers from agricultural commodity‐exporting countries are particularly vulnerable to the fluctuations of world prices: they are widely exposed to price shocks and have little ability to cope with them. Nevertheless, the effectiveness of risk‐coping strategies is conditioned by the influence of macroeconomic factors (infrastructure, inflation and financial deepening). Thus country‐specific price indices are established, and the response of production indices to price instability indices is estimated by using a panel model including macroeconomic variables which interact with price instability. Such analysis is based on a sample of 25 countries between 1961 and 2002. The results highlight a significant negative effect of the world price instability on supply, and further show that high inflation, weak infrastructure and a poorly developed financial system exacerbate this effect.     

Hedonic Price Functions for Wheat in the World Market: Implications for Canadian Wheat Export Strategy

This study derives econometric estimates of the marginal implicit values of major characteristics of wheat in world markets for two recent time periods using pooled time-series and cross-sectional data. The results indicate that a one percentage point increase in protein content was associated with an average 0.3% price premium from 1976–77 to 1979–80. This price response had increased to an average 0.5% premium from 1980–81 to 1983–84, when there was an average world market protein premium of about U.S. $6.00 for a one percentage point increase in protein per tonne of wheat. During the latter time period, there was a premium for white wheat of nearly U.S. $16 per tonne. Wheat exported from the United States and Canada appeared to be discounted in price relative to wheat from Australia. Given the general order of the inverse relationship between yield and protein content that applies in wheat breeding, it is apparent that total revenue from Canadian wheat exports could be considerably increased by more emphasis on the development of higher-yielding wheats that are adapted to the higher-moisture regions of the Prairies. More emphasis on development of white wheats that are suited to Prairie growing conditions is also merited. La présente étude vise à obtenir des estimations économétriques à partir de valeurs marginales implicites des caractéristiques principales du blé sur les marchés mondiaux pour deux périodes de temps récentes, à l'aide de séries chronologiques regroupées et de données transversales. Les résultats obtenus montrent qu'une augmentation de un pour cent de la teneur en protéines correspond en moyenne à une bonification de 0,3% de 1976–1977 à 1979–1980. Cette réaction des prix a atteint en moyenne 0,5% de 1980–1981 a 1983–1984, alors qu'une augmentation de un pour cent de la teneur en protéines par tonne de blé donnait lieu à une bonification moyenne, sur les marchés mondiaux, d'environ 6 $ US. Pendant la dernière période, le blé blanc faisait l'objet d'une bonification de près de 16 $ US par tonne. Le blé exporté des États-Unis et du Canada semble avoir été vendu à rabais, comparativement au blé venant d'Australie. Compte tenu du rapport inverse généralement observé entre le rendement et la teneur en protéines dans un contexte de sélection végétale, il semble que le total des revenus tirés des exportations canadiennes de blé pourrait s'accroître considérablement si l'on mettait davantage l'accent sur la production de variétés à rendement plus élevé, adaptées aux régions à haut taux d'humidité des Prairies. II serait également justifié de consacrer davantage d'énergie à la production de blés blancs mieux adaptés aux conditions de croissance des Prairies.     

新企业会计准则实施的市场反应研究

从价值相关和经济后果两个角度,站在投资者的立场,通过考察上市公司会计信息披露的市场反应,对新企业会计准则实施的效果进行实证研究。认为中国资本市场的会计规范有利于提高会计信息的质量,新准则的实施使上市公司会计信息质量有了实质性的提高,使股价能更好地反映上市公司的内在价值。但是新准则的实施没有使财务报告更好地反映上市公司的盈利质量。这可能是因为市场对主要财务变量和主营业务变量的关注度还不够或实施的时间还比较短,尚未适应和完全理解新会计准则。     

Output Price Subsidies in a Stochastic World

This article studies the comparative statics of output subsidies for firms, with monotonic preferences over costs and returns, that face price and production uncertainty. The modeling of deficiency payments, support-price schemes, and stochastic supply shifts in a state-space framework is discussed. It is shown how these notions can be used, via a simple application of Shephard's lemma, to analyze input-demand shifts once comparative-static results for supply are available. A range of comparative-static results for supply are then developed and discussed.     

建设用地市场背景下城乡一体化地价研究

基于城乡统一的建设用地市场,分析城乡一体化地价的衔接方法,实现城乡地价的衔接性.通过文献资料法、图解法、实证分析法,以农地发展权及阿隆索土地竞租模型理论为基础,分析认为工业用地价格是城乡建设用地价格的衔接点,且农地发展权为农用地价格与建设用地价格衔接提供了依据.在理论分析基础上,实证测算了城乡一体化地价涉及的各种价格类型,并实现了研究区城乡地价的衔接.     

Price Asymmetry in the International Wheat Market

Most wheat exports are accounted for by a limited number of countries with different policy regimes and specializing, for the most part, in particular classes of wheat. Under these circumstances, there is likely to be considerable interaction among the major exporting countries in the determination of wheat prices. In this paper, price linkages between the U.S. and other exporting countries (Canada, the European Union, Argentina and Australia) in the world wheat market are investigated. After determining that the direction of causality is from U. S. prices to the prices of other exporting countries, the nature of the price linkages is studied. The results suggest that the major exporting countries respond asymmetrically to U.S. price changes. The degree of asymmetry differs from one exporting country to another, Argentina and the European Union show greater response to falling prices than to rising prices, while the opposite is true for Canada and Australia.     

Subsistence Response to Market Shocks

Microeconomic models posit that transaction costs isolate subsistence producers from output market shocks. We integrate microeconomic models of many heterogeneous households into a general equilibrium model and show that supply on subsistence farms may respond, in apparently perverse ways, to changes in output market prices. Price shocks in markets for staple goods are transmitted to subsistence producers through interactions in factor markets. In the case presented, a decrease in the market price of maize reduces wages and land rents, stimulating maize production by subsistence households; however, real incomes of subsistence households fall.     

食品安全丑闻报道与产销价格传导——基于中国猪肉市场的经验研究

本文利用主流媒体对猪肉质量安全事件的新闻报道构造食品安全丑闻报道指数,首次从媒体报道视角分析食品安全丑闻对中国猪肉供应链产销价格传导的影响。平滑转换误差修正模型检验结果表明:(1)食品安全丑闻报道是决定产销价格传导关系的门槛变量,当食品安全丑闻报道指数处于门槛值以内时,产销价格传导表现为线性关系,超出门槛值以后,则表现为非线性关系,但更多时候表现为非线性关系;(2)食品安全丑闻报道对产销价格具有非对称冲击效应,生猪价格比猪肉价格对冲击的反应程度更大、持续时间更长。这种非对称冲击效应不仅会打破产销价格波动的固有规律,也会加剧供应链上福利分配不均衡,处于弱势地位的养殖户更容易遭受福利损失。进一步采用向量自回归模型进行脉冲响应分析,结果仍然支持上述结论。     

The Market Structure and Price Competition in China's Wheat Import Market:

This paper reveals that wheat exporters to China compete in an imperfectly competitive market. U.S. wheat exports face strong price competition from Argentina, Australia, Canada, and the European Community, but has a highly elastic demand in China. By adopting an aggressive promotion policy, the U.S. could reduce the market shares of Argentina and Canada. China would shift to wheat from Argentina, Australia, and Canada if U.S. wheat exports were interrupted because of high prices or non-price trade frictions. An expansion in China's wheat imports would accrue to wheat from Argentina and the U.S.     

Processing Technology,Market Power and Price Transmission

This paper focuses on the extent to which price changes occurring at the farm-level are transmitted to the retail sector. A price transmission elasticity is derived which is shown to depend on the degree of market power in the food industry and the nature of the food industry's processing technology. The offsetting role of the processing technology and market power in determining the extent of price transmission are highlighted. A case-study reports values for the price transmission elasticity for the US beef and pork sectors.     

Martingale Restrictions and the Implied Market Price of Risk

The market price of risk is conceptually one of the most critical artifacts of modern finance, since it provides the linkage between equilibrium and arbitrage models of derivatives pricing. In this paper, the market price of risk is derived for options on live cattle futures contracts. It provides a technique to extract the implied market price of risk (iMPR), which is conceptually similar to that used in extracting implied volatilities. It is shown that the iMPR is not linear across strike prices as theory suggests it should.
Le prix de marché du risque est conceptuellement l'un des artéfacts les plus importants de la finance moderne puisqu'il établit le lien entre les modèles d'équilibre et les modèles d'évaluation par arbitrage de l'établissement des prix des dérivés. Dans le présent article, le prix de marché du risque est dérivé pour les options sur contrats à terme de bovins vivants. Il offre une technique pour extraire le prix de marché implicite du risque qui est conceptuellement similaire à celle utilisée pour extraire les volatilités implicites. Il est montré que le prix de marché implicite du risque n'est pas linéaire pour tous les prix de levée comme la théorie semble l'indiquer.     

Martingale Restrictions and the Implied Market Price of Risk

The market price of risk is conceptually one of the most critical artifacts of modern finance, since it provides the linkage between equilibrium and arbitrage models of derivatives pricing. In this paper, the market price of risk is derived for options on live cattle futures contracts. It provides a technique to extract the implied market price of risk (iMPR), which is conceptually similar to that used in extracting implied volatilities. It is shown that the iMPR is not linear across strike prices as theory suggests it should.
Le prix de marché du risque est conceptuellement l'un des artéfacts les plus importants de la finance moderne puisqu'il établit le lien entre les modèles d'équilibre et les modèles d'évaluation par arbitrage de l'établissement des prix des dérivés. Dans le présent article, le prix de marché du risque est dérivé pour les options sur contrats à terme de bovins vivants. Il offre une technique pour extraire le prix de marché implicite du risque qui est conceptuellement similaire à celle utilisée pour extraire les volatilités implicites. Il est montré que le prix de marché implicite du risque n'est pas linéaire pour tous les prix de levée comme la théorie semble l'indiquer.     

城乡建设用地市场一体化视角下农地发展权价格研究

在国内外农地发展权已有的研究基础上,从机会成本及资源环境经济学角度对农地发展权价格进行阐述,指出农地发展权价格是农用地变更为建设用地后价值增值的货币表现,是一种增值收益的价格,其源于不同利用方式下土地产出率的差别。采用相应的评估方法,对农地发展权价格进行了量化,并以长沙大河西先导区为例,测算出研究区农地发展权价格为187.61元/m~2。