Hostname: page-component-cd9895bd7-gxg78 Total loading time: 0 Render date: 2024-12-25T00:52:40.349Z Has data issue: false hasContentIssue false
  • English
  • Français

The Impact of Macrovariables on the Farm Sector: Some Further Evidence

Published online by Cambridge University Press:  09 September 2016

Abebayehu Tegene
Abebayehu Tegene*
Affiliation:
University of Wisconsin-Milwaukeeand Resources and Technology Division, ERS, U.S. Department of Agriculture
Get access Rights & Permissions [Opens in a new window]

Abstract

Granger-causality tests and Sims' VAR technique were used to analyze the impact of macrovariables on farm output and prices in the U.S. for the period 1934-1987. Granger-causality tests show one-way causality from the macrovariables to the farm sector variables, and this is supported by impulse response functions from a VAR model. Money and interest rate effects on agricultural prices and output are apparent in the data.

Keywords

vector autoregressionGranger-causalityfarm sectornonfarm sector
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 22 , Issue 1 , July 1990 , pp. 77 - 86
Copyright
Copyright © Southern Agricultural Economics Association 1990

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

Bessler, D.A. “Relative Prices and Money: A Vector Autoregression on Brazilian Data.” Am. J. Agr. Econ., 66(1984):25–30.Google Scholar
Bordo, M. “The Effects of Monetary Change on Relative Commodity Prices and the Role of Long-Term Contracts.” J. Polit. Econ., 88 (1980):1088–1109.CrossRefGoogle Scholar
Bosworth, B.P., and Lawrence, R.Z.. “Commodity Prices and the New Inflation.” Washington, DC: The Brookings Institution, 1982.Google Scholar
Chambers, R.G. “Agricultural and Financial Market Interdependence in the Short Run.” Am. J. Agr. Econ., 66 (1984): 12–24.Google Scholar
Chambers, R.G. “Interrelationships Between Monetary Instruments and Agricultural Commodity Trade.” Am. J. Agr. Econ., 63 (1981):934–941.Google Scholar
Chambers, R.G., and Just, R.E.. “An Investigation of the Effects of Monetary Factors on U.S. Agriculture.” J. Monet. Econ., 9 (1982):235–247.Google Scholar
Devadoss, S., and Meyers, W.H.. “Relative Prices and Money: Further Results for the United States.” Am. J. Agr. Econ., 69 (1987):838–842.CrossRefGoogle Scholar
Dickey, D., and Fuller, W.. “The Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root.” Econometrica, 49 (1981): 1057–1072.CrossRefGoogle Scholar
Engle, R.F., and Granger, C.W.J.. “Cointegration and Error-Correction: Representation, Estimation and Testing.” Econometrica, 55 (1987):251–276.CrossRefGoogle Scholar
Fischer, S. “Relative Shocks, Relative Price Variability, and Inflation.” Brookings Papers on Economic Activity, 2 (1981):381–441.Google Scholar
Frankel, J.A. “Expectations and Commodity Price Dynamics: The Overshooting Model.” Am. J. Agr. Econ., 67 (1986):344–348.CrossRefGoogle Scholar
Gardner, B. “On the Power of Macroeconomic Linkages to Explain Events in U.S. Agriculture.” Am. J. Agr. Econ., 61 (1981):871–878.CrossRefGoogle Scholar
Granger, C.W.J. “Investigating Causal Relations by Econometric Models and Cross-Spectral Methods.” Econometrica, 37 (1969):424–438.CrossRefGoogle Scholar
Harvey, A.C. Time Series Models. Oxford: Philip Allan, 1981.Google Scholar
Judge, G.G., Griffiths, W.E., Hill, G.W.E., Lutkepohl, H., and Lee, T.C.. The Theory and Practice of Econometrics. 2nd ed. New York, NY: John Wiley, 1985.Google Scholar
Maddala, G.S. Introduction to Econometrics. New York, NY: MacMillan, 1988.Google Scholar
Macshiro, A., and Wichers, R.. “On The Relationship Between the Estimates of Level Models and Difference Models.” Am. J. Agr. Econ., 71 (1989):432–434.Google Scholar
Orden, D. “Money and Agriculture: The Dynamics of Money-Financial Market-Agricultural Trade Linkages.” Agr. Econ. Res., 38 (1986):14–22.Google Scholar
Orden, D., and Fackler, P.L.. “Identifying Monetary Impacts on Agricultural Prices in VAR Models.” Am. J. Agr. Econ. 71 (1989):495–502.Google Scholar
Rausser, G.C., Chalfant, J.A., Love, H.A., and Stamoulis, K.G.. “Macroeconomic Linkages, Taxes, and Subsidies in the U.S. Agricultural Sector.” Am. J. Agr. Econ., 68 (1986):399–412.CrossRefGoogle Scholar
Reagan, R. Economic Report of the President, Washington, DC, 1989.Google Scholar
Schuh, G.E. “The Exchange Rate and U.S. Agriculture.” Am. J. Agr. Econ., 56 (1974): 1–13.Google Scholar
Sims, C.A. “Macroeconomics and Reality.” Econometrica 48 (1980): 1–48.Google Scholar
Sims, C.A. “Are Forecasting Models Usable for Policy Analysis?” Quart. Rev., Federal Reserve Bank of Minneapolis, 10 (1986):2–16.Google Scholar
Starleaf, D.R. “Macroeconomic Policies and Their Impact Upon the Farm Sector.” Am. J. Agr. Econ., 64 (1982):854–860.Google Scholar
Taylor, J.S. and Spriggs, J.. “Effects of the Monetary Macroeconomy on Canadian Agricultural Prices.” Can. J. Econ. 22 (1989):278–289.Google Scholar
Tweeten, L.G. “An Economic Investigation into Inflation Passthrough to the Farm Sector.” West. J. of Agr. Econ., 5 (1980):85–106.Google Scholar
Zellner, A. “Causality and Econometrics.” In Three Aspects of Policy and Policy Making: Knowledge, Data and Institutions. Brunner, Karl and Meitzer, A.H., eds., Carnegie-Rochester Conference Series, Vol. 10, 1979.Google Scholar