IDEAS home Printed from https://ideas.repec.org/p/ags/uerssr/278199.html
   My bibliography  Save this paper

A Simple Empirical Model of Macroeconomic Effects on Agriculture: An Asset Market Approach

Author

Listed:
  • Kitchen, John

Abstract

The asset market approach specifies a direct relationship between flexible prices and the growth of the money supply in excess of real money demand. The model described in this report uses the asset market approach in estimating macroeconomic effects on agricultural prices, cash receipts, and land values. Agriculture-specific effects are also included in the model through a use-to-stock ratio variable. Simulations are run to illustrate the effects of alternative monetary and agricultural situations on the agricultural variables.

Suggested Citation

  • Kitchen, John, 1989. "A Simple Empirical Model of Macroeconomic Effects on Agriculture: An Asset Market Approach," Staff Reports 278199, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerssr:278199
    DOI: 10.22004/ag.econ.278199
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/278199/files/ers-report-401.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.278199?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Feldstein, Martin, 1982. "Government deficits and aggregate demand," Journal of Monetary Economics, Elsevier, vol. 9(1), pages 1-20.
    2. Kitchen, John & Denbaly, Mark, 1987. "Commodity Prices, Money Surprises, and Fed Credibility: A Comment," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 19(2), pages 246-251, May.
    3. Dornbusch, Rudiger, 1976. "Expectations and Exchange Rate Dynamics," Journal of Political Economy, University of Chicago Press, vol. 84(6), pages 1161-1176, December.
    4. Mussa, Michael, 1982. "A Model of Exchange Rate Dynamics," Journal of Political Economy, University of Chicago Press, vol. 90(1), pages 74-104, February.
    5. Frankel, Jeffrey A & Hardouvelis, Gikas A, 1985. "Commodity Prices, Money Surprises and Fed Credibility," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 17(4), pages 425-438, November.
    6. Hsiao, Cheng, 1981. "Autoregressive modelling and money-income causality detection," Journal of Monetary Economics, Elsevier, vol. 7(1), pages 85-106.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kitchen, John & Mack, Elizabeth, 1991. "Macroeconomic Shocks: Effects on the General Economy, Agricultural Prices, and Rural Unemployment," Staff Reports 278583, United States Department of Agriculture, Economic Research Service.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kitchen, John & Denbaly, Mark, 1987. "Arbitrage Conditions, Interest Rates, and Commodity Prices," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 39(2), pages 1-9.
    2. Sumner, Scott & Gulley, O. David & Newman, Ross, 1998. "Money Demand and Nominal Debt: An Equilibrium Model of the Liquidity Effect," Journal of Macroeconomics, Elsevier, vol. 20(2), pages 267-293, April.
    3. Kitchen, John & Orden, David, 1991. "Effects of Fiscal Policy on Agriculture and the Rural Economy," Staff Reports 278556, United States Department of Agriculture, Economic Research Service.
    4. Kitchen, John & LeBlanc, Michael & Conway, Roger, 1989. "Commodity Prices in Monetary Policy: The Potential Role of Agricultural Commodity Prices," 1989 Annual Meeting, July 30-August 2, Baton Rouge, Louisiana 270491, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Jaebeom Kim & Masao Ogaki & Minseok Yang, 2007. "Structural Error Correction Models: A System Method for Linear Rational Expectations Models and an Application to an Exchange Rate Model," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 39(8), pages 2057-2075, December.
    6. Jyh-Lin Wu, 1994. "Fiscal announcements and real exchange rate dynamics," Open Economies Review, Springer, vol. 5(2), pages 177-190, March.
    7. Guillermo Le Fort, 1986. "La Dinámica de Ajuste del Tipo de Cambio Real y la Tasa de Interés Real luego de una Devaluación," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 23(68), pages 49-68.
    8. repec:hal:spmain:info:hdl:2441/5221 is not listed on IDEAS
    9. Andrieș, Alin Marius & Căpraru, Bogdan & Ihnatov, Iulian & Tiwari, Aviral Kumar, 2017. "The relationship between exchange rates and interest rates in a small open emerging economy: The case of Romania," Economic Modelling, Elsevier, vol. 67(C), pages 261-274.
    10. Frenkel, Jacob A. & Mussa, Michael L., 1985. "Asset markets, exchange rates and the balance of payments," Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 2, chapter 14, pages 679-747, Elsevier.
    11. Guglielmo Maria Caporale & Luis A. Gil‐Alana, 2004. "Fractional cointegration and real exchange rates," Review of Financial Economics, John Wiley & Sons, vol. 13(4), pages 327-340.
    12. Peter R. Hartley, 1983. "Rational Expectations and the Foreign Exchange Market," NBER Chapters, in: Exchange Rates and International Macroeconomics, pages 153-188, National Bureau of Economic Research, Inc.
    13. Jeffrey A Frankel & Andrew K Rose, 2010. "Determinants of Agricultural and Mineral Commodity Prices," RBA Annual Conference Volume (Discontinued), in: Renée Fry & Callum Jones & Christopher Kent (ed.),Inflation in an Era of Relative Price Shocks, Reserve Bank of Australia.
    14. Jeffrey A. Frankel, 2008. "The Effect of Monetary Policy on Real Commodity Prices," NBER Chapters, in: Asset Prices and Monetary Policy, pages 291-333, National Bureau of Economic Research, Inc.
    15. V. Vance Roley, 1986. "U.S. Monetary Policy Regimes and U.S.-Japan Financial Relations," NBER Working Papers 1858, National Bureau of Economic Research, Inc.
    16. Nicolas Legrand, 2019. "The Empirical Merit Of Structural Explanations Of Commodity Price Volatility: Review And Perspectives," Journal of Economic Surveys, Wiley Blackwell, vol. 33(2), pages 639-664, April.
    17. Goldberg, Michael D. & Frydman, Roman, 1996. "Empirical exchange rate models and shifts in the co-integrating vector," Structural Change and Economic Dynamics, Elsevier, vol. 7(1), pages 55-78, March.
    18. Rogers, John H. & Jenkins, Michael, 1995. "Haircuts or hysteresis? Sources of movements in real exchange rates," Journal of International Economics, Elsevier, vol. 38(3-4), pages 339-360, May.
    19. Terra, Cristina & Valladares, Frederico, 2010. "Real exchange rate misalignments," International Review of Economics & Finance, Elsevier, vol. 19(1), pages 119-144, January.
    20. Roman Frydman & Michael D. Goldberg & Søren Johansen & Katarina Juselius, 2008. "A Resolution of the Purchasing Power Parity Puzzle: Imperfect Knowledge and Long Swings," Discussion Papers 08-31, University of Copenhagen. Department of Economics.
    21. Kitchen, John & Mack, Elizabeth, 1991. "Macroeconomic Shocks: Effects on the General Economy, Agricultural Prices, and Rural Unemployment," Staff Reports 278583, United States Department of Agriculture, Economic Research Service.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:uerssr:278199. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ersgvus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.