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The Overshooting Hypothesis: Are Agricultural Exports More Sensitive?

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  • Seale, James L., Jr.
  • Moss, Charles B.

Abstract

A seven-variable macroeconomic-agricultural VAR was used to test the overshooting hypothesis for agriculture, specifically that growth in agricultural exports are more sensitive to changes in monetary variables such as the money supply and exchange rates. No significant effects from macroeconomic variables were found to growth in either agricultural or nonagricultural exports. The effects that were found suggests that, if anything, growth in nonagricultural exports overshoot relative to growth in agricultural exports.

Suggested Citation

  • Seale, James L., Jr. & Moss, Charles B., 1989. "The Overshooting Hypothesis: Are Agricultural Exports More Sensitive?," 1989 Annual Meeting, July 30-August 2, Baton Rouge, Louisiana 270704, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea89:270704
    DOI: 10.22004/ag.econ.270704
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    References listed on IDEAS

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