By Jean-Paul Chavas, David Hummels, Brian D. Wright
The researchers who contributed to The Economics of meals cost Volatility address those and different questions. They research the forces riding either fresh and historic styles in nutrition expense volatility, in addition to the results of varied public regulations in affecting this volatility. The chapters contain reviews of the hyperlinks among foodstuff and effort markets, the effect of biofuel coverage at the point and variability of nutrients costs, and the results of weather-related disruptions in offer. The findings make clear the best way cost volatility impacts the welfare of farmers, investors, and consumers.
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Additional info for The economics of food price volatility
Results such as this are the focus of the study by Ivanic and Martin (2012). Our purpose here is to explore the implications of the same diVerence in baseline productivity growth rates for the vulnerability of people to changes in food markets, as represented by price shocks. 4 Notes: In the “low-productivity” scenario, productivity grows at the same rate in agriculture as in the rest of the economy; in the “high-productivity” scenario, productivity grows one percent per year faster in agriculture than in the rest of the economy in all countries.
03 percent per year during 1990 to 2010, less than half their average growth rate for 1960 to 1990. 3 Global Crop Yield Variability, 1960 to 2010 Green Revolution varieties of wheat and rice (and other crops) combined with complementary fertilizer and irrigation technologies contributed to very significant growth of grain yields in the latter part of the twentieth century. Did they also contribute to greater variability of yields, production, and prices? And what is the appropriate measure of variability in this con- Influences of Agricultural Technology on Food Price Variability 33 text?
The Australian wool industry fiasco in the late 1980s is a telling example. Massy (2011) estimated that the collapse of the wool reserve price scheme in 1991 imposed social costs worth at least AU $12 billion at today’s prices, more than five times the recent annual gross value of Australian wool production. Of course, the main issue here is not the storage or transport technology itself; rather, it is the unhappy decisions made by governments. But technology is involved and conditions the possibilities for damaging or desirable government policies.
The economics of food price volatility by Jean-Paul Chavas, David Hummels, Brian D. Wright