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The Role of Anticipated and Unanticipated Prices in Explaining Agricultural Supply Response

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  • Vasavada, Uptal
  • Fu, T.T.

Abstract

The traditional supply response function is modified to include anticipated and unanticipated prices. Agricultural supply response functions for grains and livestock are specified and estimated within a rational expectations framework. Test results suggest that supply does not respond to anticipated prices in the same way as unanticipated prices for both commodities considered.

Suggested Citation

  • Vasavada, Uptal & Fu, T.T., 1986. "The Role of Anticipated and Unanticipated Prices in Explaining Agricultural Supply Response," 1986 Annual Meeting, July 27-30, Reno, Nevada 278401, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea86:278401
    DOI: 10.22004/ag.econ.278401
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    File URL: https://ageconsearch.umn.edu/record/278401/files/aaea-1986-117.pdf
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    References listed on IDEAS

    as
    1. Meese, Richard, 1980. "Dynamic factor demand schedules for labor and capital under rational expectations," Journal of Econometrics, Elsevier, vol. 14(1), pages 141-158, September.
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    4. David R. Lee & Peter G. Helmberger, 1985. "Estimating Supply Response in the Presence of Farm Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(2), pages 193-203.
    5. Eckstein, Zvi, 1984. "A Rational Expectations Model of Agricultural Supply," Journal of Political Economy, University of Chicago Press, vol. 92(1), pages 1-19, February.
    6. C. Richard Shumway, 1983. "Supply, Demand, and Technology in a Multiproduct Industry: Texas Field Crops," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(4), pages 748-760.
    7. Sargent, Thomas J, 1978. "Estimation of Dynamic Labor Demand Schedules under Rational Expectations," Journal of Political Economy, University of Chicago Press, vol. 86(6), pages 1009-1044, December.
    8. Chavas, Jean-Paul & Pope, Rulon D. & Kao, Robert S., 1983. "An Analysis Of The Role Of Futures Prices, Cash Prices And Government Programs In Acreage Response," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 8(01), pages 1-7, July.
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