| Registro completo |
| Provedor de dados: |
AgEcon
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| País: |
United States
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| Título: |
On the Evolving Relationship between Corn and Oil Prices
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| Autores: |
Elmarzougui, Eskandar
Larue, Bruno
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| Data: |
2011-12-05
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| Ano: |
2011
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| Palavras-chave: |
Oil
Corn
Structural changes
Cointegration
Ethanol
Protectionism
Agricultural and Food Policy
C32
Q11
Q17
Q40
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| Resumo: |
The relationship between corn and oil prices is not a stable one. We identified three breaks in the relationship between corn and oil prices. The first break coincides with the second oil crisis. The second break marks the end of the agricultural export subsidy war between the EU and the US in the mid 1980s while the third one occurred at the beginning of the ethanol boom at the very end of the 1990s. The relationship between corn and oil prices tends to be stronger when oil prices are highly volatile and when agricultural policies create less distortion. The ethanol boom strengthened the relation between corn and oil prices which are (were not) cointegrated in the fourth regime (first three) regime(s). Impulse response functions confirm that corn prices systematically respond to oil price shocks, but the converse is not observed.
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| Tipo: |
Working Paper
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| Idioma: |
Inglês
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| Identificador: |
http://purl.umn.edu/118580
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| Relação: |
University of Laval>Center for Research on the Economics of the Environment, Agri-food, Transports and Energy (CREATE)>Working Papers
CREATE Working Papers
2011-3
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| Formato: |
30
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