Hostname: page-component-76fb5796d-zzh7m Total loading time: 0 Render date: 2024-04-30T03:40:38.186Z Has data issue: false hasContentIssue false
  • English
  • Français

The Relationship Between Price Stabilization and Cycles in the Canadian Wheat Market

Published online by Cambridge University Press:  15 September 2016

J. Stephen Clark  and
K.K. Klein
J. Stephen Clark
Affiliation:
Department of Economics and Business Management, Nova Scotia Agricultural College
K.K. Klein
Affiliation:
Department of Economics, The University of Lethbridge
Get access

Abstract

In this study, moving average price stabilization schemes were analyzed under the assumption of rational expectations. It was shown that moving average price schemes may induce cyclical behaviour into market prices where no cyclical pattern previously existed. Moving average price stabilization schemes are important to Canadian agricultural policy analysis because they are a characteristic of stabilization programs in Canada. Indeed, the Agricultural Stabilization Act, introduced in 1975, and the Gross Revenue Insurance Program, introduced in 1991, use moving average prices to calculate returns to producers.

Type
Articles
Information
Agricultural and Resource Economics Review , Volume 23 , Issue 1 , April 1994 , pp. 22 - 28
Copyright
Copyright © 1994 Northeastern Agricultural and Resource Economics Association 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Agriculture Canada. 1990. Report to Ministries of Agriculture: Grains and Oilseeds Safety Net Committee. Information Division, Agriculture Canada, Ottawa.Google Scholar
Canadian Wheat Board. Canadian Wheat Board Annual Report, Winnipeg, Manitoba, various issues.Google Scholar
Eckstein, Z. 1985. The Dynamics of Agriculture Supply: A Reconsideration. American Journal of Agricultural Economics, 67: 204–214.Google Scholar
Gallant, A.R. 1987. Nonlinear Statistical Models. Toronto: John Wiley and Sons.Google Scholar
Hansen, L.P. 1982. Large Sample Properties of Generalized Method of Moments Estimators. Econometrica 37: 424–38.Google Scholar
Hansen, L.P. and Sargent, T.J. 1980. Formulating and Estimating Dynamic Linear Rational Expectations Models. Journal of Economic Dynamics and Control, 21: 91–156.Google Scholar
Luenberger, D.G. 1979. Introduction to Dynamic Systems, John Wiley and Sons.Google Scholar
Massell, B.F. “Price Stabilization and Welfare.” Quarterly Journal of Economics 83 (1969): 284–298.Google Scholar
Muth, John F. 1961. Rational Expectations and the Theory of Price Movements. Econometrica 29: 315–335.Google Scholar
Saskatchewan Agriculture and Food. 1989. Agricultural Statistics 1988. Regina: Statistics Section, Saskatchewan Agriculture and Food.Google Scholar
Sargent, Thomas J. 1979. Macroeconomic Theory. Toronto: Academic Press.Google Scholar
Spriggs, J., and Van Kooten, G.C., 1990. Buffer Fund Price Stabilization under Rational Expectations: Policy Simulation in an Artificial Market, Canadian Journal of Agricultural Economics 38: 279–294.Google Scholar
Statistics Canada. 1985. Historical Statistics of Canada (1926–1976), 2nd Edition, ed. Urquhart, M.C., Buckley, K.A.H. and Leacy, M.A. Google Scholar
Statistics Canada. Canadian Statistical Review, Statistics Canada catalogue #11–003E, various issues.Google Scholar
Statistics Canada. Grain Trade of Canada. Statistics Canada catalogue #22–201, various issues.Google Scholar
Statistics Canada. Grains and Oilseeds Review. Statistics Canada catalogue #22–007, various issues.Google Scholar
Statistics Canada. Prices and Price Indexes. Statistics Canada catalogue #62–002, various issues.Google Scholar