Agriculture's terms of trade: issues and implications |
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Authors: | David Colman |
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Affiliation: | School of Social Sciences, University of Manchester, Oxford Road, Manchester M13 9PL, UK. |
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Abstract: | The article addresses (1) the issue of what agricultural commodity prices should be compared to if we are concerned with the welfare of agriculturalists, (2) the general absence of product quality adjustment when analysis is undertaken comparing agricultural to manufactured goods prices, (3) the extent to which energy prices are or will be the driver of both manufactured and agricultural prices, and (4) the importance of considering agriculture's terms of trade (TOT) against the service sector, since the service sector is typically the largest in the economy. It reflects on the basic question of whether the widespread perception “that agriculture's TOT secularly decline” is correct. |
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Keywords: | F14 N50 N60 N70 O13 Q17 Commodity prices Agriculture's terms‐of‐trade Hedonic pricing Welfare Biofuels |
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