Nonlinearities in the U.S. corn‐ethanol‐oil‐gasoline price system |
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| Authors: | Teresa Serra David Zilberman José M Gil Barry K Goodwin |
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| Institution: | 1. Center for Agrofood Economics and Development (CREDA‐UPC‐IRTA), Parc Mediterrani de la Tecnologia, Edifici ESAB, C. Esteve Terrades, 8, 08860 Castelldefels, Spain;2. Department of Agricultural and Resource Economics, University of California, 207 Giannini Hall #3310, Berkeley, CA 94720‐3310, USA;3. Department of Agricultural and Resource Economics, North Carolina State University, Box 8109, Raleigh, NC 27695‐8109, USA |
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| Abstract: | We use a smooth transition vector error correction model to assess price relationships within the U.S. ethanol industry. Monthly ethanol, corn, oil, and gasoline prices from 1990 to 2008 are used in the analysis. Results indicate the existence of long‐run relationships among the prices analyzed. Strong links between energy and food prices are identified. |
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| Keywords: | L1 Biofuels United States Cointegration Threshold |
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