Showing papers on "Commodity published in 1988"
TL;DR: In this paper, the authors revisited the empirical foundation of the alleged secular decline in the prices of primary commodities relative to those of manufactures and found that from 1900 to 1986 the relative prices of all primary commodities fell on trend by 0.5 percent a year and those of non-fuel primary commodities by 6.6 percent.
Abstract: The authors revisit in this article the empirical foundation of the alleged secular decline in the prices of primary commodities relative to those of manufactures. They use a newly constructed index of commodity prices and two modified indexes of manufactured good prices, and find that from 1900 to 1986 the relative prices of all primary commodities fell on trend by 0.5 percent a year and those of nonfuel primary commodities by 0.6 percent a year. They thus confirm the sign, but not the magnitude, of the trend implicit in the work of Prebisch. But even the more limited secular decline shown by their relative price indexes may be magnified by an incomplete account of quality improvements in manufactures. They then show that the evolution of terms of trade of nonfuel primary commodities is not the same as that of the net barter terms of trade of non-oil-exporting developing countries. Finally, they find that despite the decline that has probably occurred during the current century in the terms of trade of nonfuel primary commodities, the purchasing power of total exports of these products has increased considerably. Similarly, the fall that may have occurred after World War II in the net barter terms of trade of developing countries seems to have been more than compensated for by the steady improvement in their income terms of trade.
513 citations
TL;DR: In this article, the benefits from cost-reducing research and their distribution under a range of price policies are compared with those that would arise in the absence of the policies, and the implications for decisions on price policies and for distortions in incentives for the allocation of resources to research are raised.
Abstract: The benefits from cost-reducing research and their distribution under a range of price policies are compared with those that would arise in the absence of the policies. While any price policy affects the distribution of research benefits, the net national or world benefits may be reduced, lef unchanged, or increased, depending on the nature of the policy and the significance of the country in the world market for the commodity. Some implications for decisions on price policies and for distortions in incentives for the allocation of resources to research are raised.
90 citations
TL;DR: The Stigler/Peltzman model was consolidated by as discussed by the authors, who developed a formal market model in which regulations were viewed as commodities brokered via political markets in response to bids and counter-bids by those who stood to gain or to lose from specific regulation outcomes.
Abstract: its many dimensions, from the perspective of market economics. This new thrust was consolidated in 1976 by S. Peltzman, who developed a formal market model in which regulations were viewed as commodities brokered via political markets in response to bids and counter-bids by those who stood to gain or to lose from specific regulation outcomes. The subsequent contribution by Becker (1983) added insights and institutional flesh to the Stigler/Peltzman embryo, confirming regulation as an integral component of mainstream market economics. An important implication of such contributions, especially those from the Chicago perspective, is that regulation for the most part confirms resource efficiency within market process; that political markets in the absence of entry barriers, are just as effective as are competitive commodity markets in achieving economic efficiency defined within a comparative institutions framework. Nowhere is this complacency more apparent than in the conclusion drawn by Becker (1983) from a detailed formal analysis of competition among pressure groups for political influence:
61 citations
TL;DR: In this paper, the authors argue that the way to revitalize the U.S. rural economy is not to preserve primary commodity production by heavily investing in rural America, but to ease the transition of a rural economy out of an almost exclusive reliance on primary commodities and into more competitive, more specialized production.
Abstract: The broad decline in world prices of primary commodities is a major reason why the U. S. is in danger of becoming a bicoastal economy. America's rural economy has been a commodity-based economy, centered on agricultural and raw materials. As world prices have declined, rural America has suffered the results of this decline. The author asserts that the way to revitalize the U.S. rural economy is not to preserve primary commodity production by heavily investing in rural America, but to ease the transition of a rural economy out of an almost exclusive reliance on primary commodities and into more competitive, more specialized production. In conclusion, the author presents four key barriers that must be overcome to form a strategic approach to rural economic development, after which, rural America could shift from primary commodities to small batch manufacturing and specialized services.
20 citations
TL;DR: In this paper, an empirical study of agglomeration in quality space is presented, where data has been collected for 175 West German commodities that the consumer testing agency Test has tested on a number of quality characteristics.
Abstract: This paper is an empirical study of agglomeration in quality space. Data has been collected for 175 West German commodities that the consumer testing agency Test has tested on a number of quality characteristics for a number of brands for each commodity, thus providing product positions in quality space. The major findings are that agglomeration seems to be the norm rather than the exception, an d that the market does not usually fail consumers wanting a high-qualit y brand, but may fail consumers wanting a low-quality brand. Copyright 1988 by Blackwell Publishing Ltd.
16 citations
01 Sep 1988
TL;DR: In this article, the authors review contemporary practices in commodity, currency and corporate stock trading in the light of Islamic economic framework and suggest bare outlines of the Islamic alternatives in these areas. But they do not discuss the impact of these practices on the real economy.
Abstract: IntroductionThe main objective of this paper is to review contemporary practicesin commodity, currency and corporate stock trading in the light of Islamiceconomic framework and to suggest bare outlines of the Islamic alternativesin these areas. Trade in commodities, currencies and stocks involves forwardand htures contracts. Arbitrage, hedging and speculation are also essentialelements of these markets. We shall try to examine these practices to determinetheir compatibility with the Islamic law. We shall also try to find out theexact point where they deviate from the Islamic framework and suggest somemechanism to perform the same economic function in the Islamic economy.Our main conclusions are summarized below:First, by and large the trade in spot and forward markets iscovered by the Islamic law.Second, futures trading is alien to the Islamic law as it involvestrading without actual transfer of the commodity or stock to thebuyer which is explicitly prohibited by the Prophet (SAAS).Third, speculation by itself is not unlawful in Islam but theIslamic economic framework does not allow professional speculatorsto thrive.Fourth, the Islamic condition of transfer of the commoditystock to the buyer is a mechanism to boost the real sector.Fifth, stability in the foreign exchange market can be achievedby cooperation of the international community. It would necessitateabolition of al riba and scrapping of trade restrictions over bordersbesides accepting money as a medium of exchange only, ratherthan a commodity.Sixth, to discourage negative effects of speculation, informationregarding commodities and corporations needs to be widely andfreely disseminated. No amount of restrictive regulations can ...
14 citations
Book•
01 May 1988
10 citations
01 Jan 1988
TL;DR: In this paper, the authors argue that with the recent advances in information and communication technologies, the time has arrived to market electricity as something other than a homogeneous commodity with a single price.
Abstract: Electricity has traditionally been generated and sold as a homogeneous commodity with a single price. This practice has less to do with the nature of electricity than with the lack of technology to distinguish among each kilwatthour based on what- and when - it is used. This article argues that with the recent advances in information and communication technologies, the time has arrived to market electricity as something other than a homogeneous commodity. By pricing electricity according to its time-of-use, for example, electricity will be more efficiently utilized, benefitting both the customers and the electric companies.
10 citations
TL;DR: The authors examines the strength of Western Australia's claim to be "the resource state" and argues that while resource development and capital investment have brought tangible economic benefits to Western Australia and the nation, certain costs have also been generated.
Abstract: SUMMARY This paper examines the strength of Western Australia's claim to be ‘the resource state’. It traces the history of the state's mineral development and points to close links between the development, the growth of the economy and the spread of settlement. The crucial role of the state government in facilitating capital investment and fostering a growth ideology is also highlighted. The paper argues that while resource development and capital investment have brought tangible economic benefits to Western Australia and the nation, certain costs have also been generated. Growth has caused damage to the physical environment and the once‐numerous Aboriginal population. Moreover, given the international commodity crisis of the 1980s, mineral export strength is no sure recipe for economic success.
9 citations
TL;DR: The main problem with their critique is that it fails to undertake a rigorous analysis either of the Madden-Batey model or of the alternative (the Hynes-Jackson model) which they offer as mentioned in this paper.
Abstract: Introduction In a note in this volume Hynes and Jackson (1988) discuss, inter alia, a model developed some time ago by myself and Batey (Madden and Batey, 1980). They make a number of criticisms, some of which are quite justified, but others of which I suggest are misguided. The main problem with their critique is that it fails to undertake a rigorous analysis either of the Madden-Batey model or of the alternative (the Hynes-Jackson model) which they offer. The absence of such analysis forces the authors to adopt declamatory rather than definitive postures in their critique and in their proposed solution. This brief note first picks up one or two points of contention in the Hynes and Jackson paper, second, offers analyses of the two models in question, which I submit enable us to understand the underlying structures and limitations of both models, and, last, reminds readers of some of the developments in demographic economic modelling that have taken place since the original Madden Batey paper of 1980.
7 citations
TL;DR: In both theoretical and empirical research on consumer demands for commodities, economists face choices concerning the aggregation of commodities as mentioned in this paper, with little guidance from theory about the process which generated the data.
Abstract: In both theoretical and empirical research on consumer demands for commodities, economists face choices concerning the aggregation of commodities. All sets of data available for applied demand analysis, for example, have some degree of commodity aggregation. Frequently, consumption and price data are presented only for very broad categories of commodities. The researcher confronted with such data must make difficult decisions with little guidance from theory about the process which generated the data.
Patent•
16 Mar 1988
TL;DR: In 1989, JPO&Japio as discussed by the authors proposed to facilitate various kinds of commodity management by edit-processing commodity information about plural commodities belonging to same group in a combination management file so that the commodity information can be made into a series of output information which has relations correlating with each other.
Abstract: PURPOSE: To facilitate various kinds of commodity management by edit- processing commodity information about plural commodities belonging to same group in a combination management file so that the commodity information can be made into a series of output information which has relations correlating with each other CONSTITUTION: Usually, plural number of commodity groups 20 composed of plural commodities related with each other, additional related commodities, etc, are stored in a combination management file 12 A combination processing means retrieves the commodities belonging to the same group 20 in a combination management file 14 from a commodity information file such as an itemized management file 10a and edit-processes the commodity information by a determined output format so that the commodity information can be made into a series of output information such as one table and one graph which information has relations correlating with each other Thus, the various kinds of commodity management such as profit management, stock management, ordering management, and price management can be executed easily COPYRIGHT: (C)1989,JPO&Japio
TL;DR: In this article, the authors suggest that biotechnological research will contribute to a further decrease in commodity prices and further instability of the agricultural structure in many developing countries and, consequently, an acceleration of migration to the already overcrowded cities.
TL;DR: In this paper, Daberkow and Reichelderfer have provided a stimulating review of some of the issues surrounding low-input agriculture (LIA), and they agree with their basic assumption that current levels of adoption of LIA by U.S. farmers are based upon private profit-maximizing behavior.
Abstract: Daberkow and Reichelderfer (DR) have provided a stimulating review of some of the issues surrounding low-input agriculture (LIA). I agree with their basic assumption that current levels of adoption of LIA by U.S. farmers are based upon private profit-maximizing behavior. Furthermore, I agree with their conclusion that ". .. removal or modification of commodity program incentives would likely have the most dramatic short-term influence on the feasibility of LIA systems." However, DR's arguments would be strengthened by a more complete theoretical explanation of the relationship of commodity programs to input use. Conceptually, commodity programs can increase agrichemical use and discourage LIA by (a) biasing the output mix toward chemical-intensive crops and (b) encouraging growers to apply more agrichemicals per acre than they would in the absence of commodity programs. Major USDA program crops do receive heavy agrichemical applications. Fleming (p. 127) reports "federal support programs are focused on four crops that account for at least 65% of all agrichemical use: corn, cotton, wheat, and soybeans." The share of total U.S. nitrogen, phosphate, and potash devoted to corn, cotton, wheat, and soybeans grew from 42% in 1964 to 62% in 1985 (Vrooman). Microeconomic principles suggest that increasing the effective returns for agrichemical-intensive program crops will direct resources toward these crops at the expense of nonprogram crops. Dixon, Dixon, and Miranowski, cited by DR, estimated that least-cost free market production during 1965 could have satisfied output demands with one-half the pesticide use observed under prevailing government policies. An important point made by DR is that factor-factor substitution is inextricably tied to output-output adjustment in the transition to LIA. As market forces or changes in government policies encourage changes in the output mix, adjustments involve not only substituting nonprogram crops on land that previously grew program crops but continuing to grow program crops on the same land in less intensive rotations.
TL;DR: In this paper, four policy scenarios were evaluated for modifying current farm legislation and on major reform of trade policies through the GATT negotiations, and two of these scenarios evaluate modifications of the current legislation.
Abstract: Four policy scenarios were evaluated in this study. The results of these scenarios contribute to the ongoing policy discussions on modifying current farm legislation and on major reform of trade policies through the GATT negotiations. Two of these scenarios evaluate modifications of the current legislation. One expands the Conservation Reserve Program (CRP) to idle 65 million acres, 20 million acres more than the current maximum. Another reduces target prices by 10 percent below levels assumed under baseline, which continues current programs through 1996/97. The increase in CRP acreage virtually eliminates the annual acreage programs and increases commodity prices by about 10 percent on average. It is possible that the large land reserve would lead to tighter commodity markets, which would be more sensitive to weather fluctuations. The primary effect of the reduced-target-price scenario is to reduce the level of income transferred from the government to producers of program commodities. The second set of scenarios includes the United States unilaterally phasing out its current programs and multilateral removal of farm programs in a global context. Under the unilateral option, commodity prices and incomes in the United States fall, and it is likely there would not be sufficient savings in government program costs to compensate the income losses. Most of the costs are internalized in the United States. By contrast, the global free trade option shifts a larger share of the cost to producers in other developed countries. The U.S. faces increased demand for its exports. World commodity market prices increase, except for soybeans, which reduces the income losses of U.S. producers. Furthermore, it would be feasible to design decoupled program payments to compensate producers for income losses, should that be politically desirable.
Patent•
23 Dec 1988
TL;DR: In this article, the feature attributes of the commodities showing the good sales by applying the cluster analysis to these commodities in terms of the commodity attribute information and obtaining and outputting the number of clusters, the cluster center attribute, and the commodities close to the cluster centre.
Abstract: PURPOSE: To automatically show the feature attributes of the commodities showing the good sales by applying the cluster analysis to these commodities in terms of the commodity attribute information and obtaining and outputting the number of clusters, the cluster center attribute, and the commodities close to the cluster center. CONSTITUTION: The commodity codes are previously set at a computer system and the commodity attribute information is inputted for each of these set commodity codes. Then these commodity codes are inputted when the corresponding commodities are sold. A commodity-based sale calculation process is carried out so that the sales data on each commodity are totalized based on the input of the commodity codes at each sales time point. Then the commodities showing the good sales are selected out of the commodity-based sales data obtained by the commodity sale calculation process. Furthermore the cluster analysis is applied to a group of the selected good- selling commodities in terms of the commodity attribute information. Thus the number of clusters is obtained together with the cluster center attribute and the commodities close to the cluster center. In such a way, the good-selling commodities are divided into several groups and it is possible to automatically find out a specific combination of commodity attributes that characterize each group. COPYRIGHT: (C)1990,JPO&Japio
TL;DR: In this article, an aggressive co-op advertising campaign can make an important difference in the marketing of branded consumer products, and consumers do buy the items by brand name, and therefore they can and will respond to the kind of “where-to-buy” information that conventional use of co‐op allowances delivers so well.
Abstract: It's no secret that an aggressive co‐op advertising campaign can make an important difference in the marketing of branded consumer products. Consumers do buy the items by brand name, and therefore they can and will respond to the kind of “where‐to‐buy” information that conventional use of co‐op allowances delivers so well.
01 Jan 1988
TL;DR: The authors reviewed Chinese economic reform to date and sketched a linked sequence of reforms stretching over the coming 20 years, arguing that the logical interrelations of a market system require that markets in China be developed in a particular order: first commodity markets, then loanable funds, then capital goods, and finally labor.
Abstract: The authors review Chinese economic reform to date, and sketch a linked sequence of reforms stretching over the coming 20 years. They argue that the logical interrelations of a market system require that markets in China be developed in a particular order: first commodity markets, then loanable funds, then capital goods, and finally labor. In addition, they argue that legal reforms, and a revival of traditional Chinese cultural values, are essential for the success of market institutions in China. J. Comp. Econ., September, 1987, 11(3), pp. 490–502. Yale University, New Haven, Connecticut 06520; Union College, Schenectady, New York 12308.
TL;DR: The recovery of world trade in the last few years has not led to an improvement in the situation of the developing countries Many commodity prices are currently at their lowest level since the 1930s, and protectionism is on the increase.
Abstract: The recovery of world trade in the last few years has not led to an improvement in the situation of the developing countries Many commodity prices are currently at their lowest level since the 1930s, and protectionism is on the increase Are the Uruguay Round negotiations likely to bring positive results for the developing countries?
Posted Content•
TL;DR: The authors examines the role of commodity markets in transmitting disturbances internationally and finds that contrary to the implications of the "engine of growth" argument, a fiscal-induced expansion in a large commodity-importing country could either increase or decrease growth in the developing commodity-exporting country, and unambiguously reduces output in the second commodity importing country.
Abstract: The "engine of growth" argument holds that an economic expansion in a large country increases the growth of its trading partners. Growth in developing countries is routinely linked to growth patterns in the Industrial economies. This paper examines the role of commodity markets in transmitting disturbances internationally and finds that contrary to the implications of the "engine of growth" argument, a fiscal-induced expansion in a large commodity-importing country could either increase or decrease growth in the developing commodity-exporting country, and unambiguously reduces output in the second commodity-importing country.
TL;DR: Since the sharp collapse in the world market prices of virtually the entire range of primary commodities exported from developing countries from their peak in 1979-80, a large number of these countries have faced an external financing crisis as discussed by the authors.
Abstract: Since the sharp collapse in the world market prices of virtually the entire range of primary commodities exported from developing countries from their peak in 1979–80, a large number of these countries have faced an external financing crisis. This has been the case not only for the very poor countries which are heavily dependent on commodity exports and official aid flows for their foreign exchange availabilities, but also for the more economically advanced developing countries many of which had been heavy borrowers on the commercial banking markets, and were faced, as from 1981, with an unforeseen and unprecedented increase in interest rates on their outstanding foreign debts. The majority of such countries have been forced to reach agreements with the International Monetary Fund (IMF) as a condition for obtaining stand-by credits, and for the conclusion of agreements with commercial bank creditors for debt rescheduling.
TL;DR: The role of government intervention in agriculture can be traced through regulation, protection, and price support programs as mentioned in this paper, which not only affects what commodities and products are produced, but also the volume of imports, exports and ultimately the distribution of many commodities within the United States.
Abstract: Agriculture in the United States has long been shaped and molded by federal government attempts to enhance profitability through a variety of government programs and policies. Depending on the commodity category selected, one can easily trace the role of government in agriculture through regulation, protection and price support programs. Government intervention in agriculture not only affects what commodities and products are produced, but also the volume of imports, exports and ultimately the distribution of many commodities within the United States.
Patent•
16 Mar 1988
TL;DR: In this article, the authors proposed a ranking processing to easily find a commodity in plural displayed ranked commodities which has a conflicting inclination with the rank when this kind of commodity exists in the above mentioned ranked commodities by emphatically displaying commodity information about it concerned when either an upper rank or a lower rank attached to it conflicts with the inclination of the commodity concerned.
Abstract: PURPOSE: To easily find a commodity in plural displayed ranked commodities which has a conflicting inclination with the rank when this kind of commodity exists in the above-mentioned plural displayed ranked commodities by emphatically displaying commodity information about it concerned when either an upper rank or a lower rank attached to it conflicts with the inclination of the commodity concerned. CONSTITUTION: A ranking processing means A refers to commodity information files 9, 10, and 12 and ranks plural commodities as either the upper rank or the lower rank according to the volume of data in a specific period included in items for ranking in the commodity information. An inclination judging means B compares plural data for every unit period included in an item MR for ranking for the commodities with each other and judges the inclination of either increase or decrease. Thereafter, an emphatic display means C emphatically displays the commodity information about it concerned when either the upper rank or the lower rank attached to the commodity by the ranking processing means A conflicts with the inclination of the same concerned judged by the inclination judging means B. COPYRIGHT: (C)1989,JPO&Japio
TL;DR: In this paper, the authors discuss the history of macro-project development in Australia and the lessons to be learned concerning the prudent application of limited recourse financing, the need for appropriate legal structuring, the complexities of government participation in private enterprise, and the manipulation of resource-based projects for reasons of national infrastructure development.
Journal Article•
TL;DR: The main focus of as mentioned in this paper is on relative price structure and price behaviour, and price levels and price movements in India vis-a-vis other countries, and the authors were prompted to make a comparative analysis in the light of the alleged notion that prices in this country are higher than foreign prices.
Abstract: The main focus of this paper is on relative price structure and price behaviour-price levels and price movements in India vis-a-vis other countries. The authors were prompted to make a comparative analysis in the light of the alleged notion that prices in this country are higher than foreign prices. Recently, international agencies have pushed this notion to such an extent that they are suggesting a further devaluation of the Indian rupee: Investigations at the detailed commodity level reveal a tendency of home prices to drift downwards at least for the seventies and the beginning of the eighties when compared with foreign price movements. Thus India's poor export performance does not represent a competitiveness problem per se. Instead, one might readily account for this in non-price factors, some of which are external factors. It appears that strait-jacket prescriptions such as exchange rate adjustment are unrealistic and misplaced; instead, better results can be achieved if reliance is placed on selective measures.
Posted Content•
TL;DR: The authors examines the role of commodity markets in transmitting disturbances internationally and finds that contrary to the implications of the "engine of growth" argument, a fiscal-induced expansion in a large commodity-importing country could either increase or decrease growth in the developing commodity-exporting country, and unambiguously reduces output in the second commodity importing country.
Abstract: The "engine of growth" argument holds that an economic expansion in a large country increases the growth of its trading partners. Growth in developing countries is routinely linked to growth patterns in the Industrial economies. This paper examines the role of commodity markets in transmitting disturbances internationally and finds that contrary to the implications of the "engine of growth" argument, a fiscal-induced expansion in a large commodity-importing country could either increase or decrease growth in the developing commodity-exporting country, and unambiguously reduces output in the second commodity-importing country.
Posted Content•
TL;DR: In this article, the microeconomic foundation is laid for evaluating generic promotion campaigns where government is involved, supply is uncontrolled, and markets are close to saturation, and the recent legislation enabling beef and pork promotion provides an application for the model.
Abstract: Both producers and consumers may respond to the use of producer contributions to fund commodity promotion. The microeconomic foundation is laid for evaluating generic promotion campaigns where government is involved, supply is uncontrolled, and markets are close to saturation. The recent legislation enabling beef and pork promotion provides an application for the model.
Posted Content•
TL;DR: In this article, the authors estimate export subsidy and tax equivalents of commodity price and income support programs for wheat and corn for the 1986 crop-year programs were equivalent to imposing substantial export taxes, although the level of implicit tax was reduced by about half compared with the 1985 crop year programs.
Abstract: The acreage reduction requirements in the 1986 wheat and corn programs more than offset the subsidy effects of the target price/deficiency payments affect world markets much like direct export subdidies, and acreage reduction requirements affect markets like an export tax This article estimates export subsidy and tax equivalents of commodity price and income support programs for wheat and corn The 1986 crop-year programs were equivalent to imposing substantial export taxes, although the level of implicit tax was reduced by about half compared with the 1985 crop-year programs
01 Jan 1988
TL;DR: In this paper, the authors ask how far econometric approaches have been developed to deal with commodities in international economic linkages and how they have been used to integrate commodity price impacts into these models.
Abstract: International economic interrelations have come increasingly into the foreground as internationally linked economic instability has mounted since the early 1970s, as a result of broad movements in prices of fuels and other commodities. It is fortunate that economists are also increasingly better able to handle global econometric systems and to integrate commodity price impacts into these models. In this paper we ask how far econometric approaches have been developed to deal with commodities in international economic linkages.