Showing papers on "Commodity published in 1991"

Storage and Commodity Markets

Abstract: Storage and Commodity Markets is primarily a work of economic theory, concerned with how the capability to store a surplus affects the prices and production of commodities. Its focus on the behaviour, over time, of aggregate stockpiles provides insights into such questions as how much a country should store out of its current supply of food considering the uncertainty in future harvests. Related topics covered include whether storage or international trade is a more effective buffer and whether stockpiles are more useful in raw or processed form. Several chapters are devoted to analysing such government programmes as price bands, buffer stocks, and strategic reserves. This material is in the domain of applied welfare analysis with public finance. Because the theory presented is sufficiently general, it should be of interest to macroeconomists studying aggregate inventories or savings and to those in operations research studying inventory and pricing policies of large firms.

The Marshall Plan: History's Most Successful Structural Adjustment Program

Abstract: The post-World War II reconstruction of Western Europe was one of the greatest economic and foreign policy successes of this century. `Folk wisdom' assigns much of the credit to the Marshall Plan, which transferred some $13 billion of US aid to Europe between 1948 and 1951. We examine the economic effects of the Marshall Plan, and find that it was too small to have significantly accelerated recovery by financing private investment, speeding the repair of infrastructure or easing commodity bottlenecks. None the less, we conclude that the conditions attached to Marshall aid contributed significantly to Western Europe's rapid growth after World War II, by pushing Europe's `mixed economies' in a direction that left them with a mixture of more `market' and fewer controls.

The present value model of rational commodity pricing

Abstract: The present value model relates an asset's price to the sum of its discounted expected future payoffs. I explore the limits of the model by testing its ability to explain the pricing of storable commodities. For commodities the payoff stream is the convenience yield that accrues from holding inventories, and it can be measured directly from spot and futures prices. Hence the model imposes restrictions on the joint dynamics of spot and futures prices, which I test for four commodities. I find close conformance to the model for heating oil, but not for copper or lumber, and especially not for gold. The pattern is the same for the serial dependence of excess returns, These results suggest that for three of the four commodities, prices at least temporarily deviate from fundamentals.

Hedonic Price Estimation for Kansas Wheat Characteristics

Abstract: A fundamental concern of agricultural market participants involves understanding the factors which influence a particular commodity's price in the marketplace. Agricultural commodities are often of a heterogeneous nature, exhibiting differences in quality, variety, and physical attributes. Fundamental forces operate in the competitive marketplace to efficiently assign a price to a particular commodity which reflects the presence and quality of such attributes. Such differential prices reflect the relative utility provided by a differentiated

The Development Frontier: Essays in Applied Economics

Abstract: Traders and the development frontier economic progress and occupational distribution - numbers, roles and categories population, welfare and development - gloom dispelled foreign aid - the central component of world development? the Third World debt crisis - can't pay or won't pay? marketing reform - an inventory of intervention co-operative societies in less developed countries commodity stabilization - disguised restrictionism wage regulation in less developed countries - on not helping the poor price control in less developed countries - unexpected consequences industrialization and development - Nigeria policy and progress - the Hong Kong story import capacity and economic development - India price response - cocoa and palm oil in Nigeria economic history as theory an unrealistic prospectus development economics - a retrospective view.

Economic policy towards the environment.

Abstract: Introduction: Dieter Helm 1. Economic Policy Towards the Environment: Dieter Helm and David Pearce 2. Economic Instruments for Environmental Regulation: T. H. Tietenberg 3. Valuing Environmental Damage: Per-Olov Johansson 4. The Environment as a Commodity: Partha Dasgupta 5. The Problem of Global Environmental Protection: Scott Barrett 6. International Environmental Problems: Karl-Goran Maler 7. Global Warming: Wilfred Beckerman 8. The Regulation of Oceanic Resources: Timothy Swanson 9. Environmental Policy in the United States: Dallas Burtraw and Paul Portney 10. An Economic Approach to Saving the Tropical Forests: David Pearce 11. Domestic Energy Conservation: Dieter Helm, Stephen Smith and Vanessa Brechling.

Commodity bundling for competitive advantage: strategic implications

Abstract: Commodity bundling involves grouping related products together into a unified market offering. It is a familiar approach in a number of industries, yet strategic and structural implications are not well developed. This article presents a descriptive model of the potential advantages of commodity bundling, the fit between firm competences and customer needs, and the decision to bundle. Effects on adaptation, type of innovation, and organization structure are discussed. Managerial implications and research propositions from case studies of 16 corporations, and from strategy, marketing and economic theory are presented.

Commodity and resource policies in agricultural systems

Abstract: This first volume in the series "Agricultural Management and Economics" aims at identifying areas of important interactions between agriculture and resources where high payoffs to co-ordination would likely occur. It is a topical book, as interest and opportunites for co-ordinating these policies are given new and pending legislation, such as the 1990 Farm Bill in the US. The text provides an overview and offers a perspective of the interrelationships between agricultural and resource policy, whilst also considering the requirements of the environment and its protection.

Consumers, commodities, and choices: A general model of consumer behavior

Abstract: Results of present-day marketing and consumer behavior research suggest that consumer decision-making processes and commodity acquisition patterns differ depending upon a number of variables, including identity of the decisionmakers, nature and type of commodity, perceived need for an item, and the socio-cultural environment. Archaeological research tends to focus on aspects of historical consumer behavior associated with specific commodities and exhibited by particular segments of the population. It is suggested that a general model of consumer behavior, one not linked to any specific commodity or population segment, will serve to place archaeological research in a broader context and permit the future development of consumer behavior models for other types of commodities and population segments.

Provisions of the Food, Agriculture, Conservation, and Trade Act of 1990

Abstract: The Food, Agriculture, Conservation, and Trade Act of 1990 (P.L. 101-624) establishes a comprehensive framework within which the Secretary of Agriculture will administer agricultural and food programs from 1991 to 1995. This report describes provisions of the 1990 Act as amended by the Omnibus Budget Reconciliation Act of 1990 (P.L. 101-508). Provisions for all major commodity programs, such as income and price support, are reported, as well as general commodity provisions, trade, conservation, research, food stamps, fruit and vegetable marketing, organic food standards, grain quality, credit, rural development, forestry, crop insurance and disaster assistance, and global climate change provisions.

Change in the world system of metropolises: the role of business intermediaries

Abstract: Business intermediaries engaged in the international exchange of capital and commodities (financiers, commodity brokers, wholesalers, corporate head offices) influence the formation of and change in the system of world metropolises through their reactions to competitioh: (1) altering transaction costs, (2) differentiation or dedifferentiation to control markets, and (3) appeal to force. Propositions about intermediary behavior are supported with evidence from the case study literature. These propositions form the basis for a synthesis of the changes in the system of world metropolises.

The Effects of Commodity Programs on Resource Use

Abstract: Agricultural economists are entering an exciting and challenging era with significant opportunities to coordinate agricultural and resource policies to achieve greater “consistency”2 The Food Security Act (FSA) of 1985 ushered in a new set of commodity and conservation policies For the first time, the farm bill contained an active conservation title that introduced significant new efforts to protect natural resources Simultaneously, these conservation provisions contributed to commodity supply control objectives and reduced commodity program outlays But conservation policy alone may not be efficacious in altering agricultural production in environmentally sensitive areas

The Effects of Commodity Programs on Resource Use

Abstract: Agricultural economists are entering an exciting and challenging era with significant opportunities to coordinate agricultural and resource policies to achieve greater “consistency”2. The Food Security Act (FSA) of 1985 ushered in a new set of commodity and conservation policies. For the first time, the farm bill contained an active conservation title that introduced significant new efforts to protect natural resources. Simultaneously, these conservation provisions contributed to commodity supply control objectives and reduced commodity program outlays. But conservation policy alone may not be efficacious in altering agricultural production in environmentally sensitive areas.

Default Premiums in Commodity Markets: Theory and Evidence

Abstract: We model the effect of nonperformance risk on forward and futures pricing and look for evidence of nonperformance risk in precious metals futures prices from the "Hunt Brothers" episode. Changes in default premiums are measured and related to the sequence of events in the metals markets during this period. Results suggest first that ex ante costs of nonperformance can be a significant, priced factor in commodity markets and second that the arrival of new information is often associated with changes in these costs. The evidence has implications for both theoretical and empirical research on commodity markets. ORGANIZED COMMODITY MARKETS OFFER traders an efficient medium in which to execute their hedging and speculative strategies. In particular, the markets have developed mechanisms that reduce the costs of nonperformance, which would be substantial in the absence of an organized exchange. Devices such as margin requirements, position limits, daily marking-to-market, price limit moves, and the clearinghouse reduce the expected costs of distress and default in commodity markets.' While organized exchanges greatly reduce expected costs of nonperformance, they do not eliminate such costs. Throughout the history of organized futures trading, there have been many instances of markets collapsing, or coming to the brink of collapse, after a period of unusual trading activity. The most prominent example in recent times is the near-collapse of the New

Apparatus and method for applying material to agricultural commodities

Abstract: The present invention is drawn to an apparatus and process for applying material, such that it is dispersed in a pulsed manner, in micronized form, to agricultural commodities, while preventing drift of the micronized material to nontargeted areas. The instant invention employs a canopy which is passed over the agricultural commodity wherein a micronizing means is used to apply material, such as a pesticide, to an agricultural commodity within the canopy. The micronized material is preferably electrostatically charged when applied to the commodity.

The Impact of Commoditisation on the Mbuti of Eastern Zaire

Abstract: The Mbuti hunter-gatherers in the Teturi region of Eastern Zaire have experienced considerable economic and social change since the recent introduction of meat trading and wage labour. While contact with the market economy is not a recent event, in the past it was made indirectly by way of.their agricultural neighbours. Today, however, the Mbuti are directly involved in co;nmodity exchange. This paper analyses the various consequences for their economic and social life of their direct involvement in commodity exchange. First, there is a brieftdescription of the history of Mbuti relations with surrounding societies to place the present day society in context. Second, the fiow of commodities into this central part of the Ituri Forest, is described to show the extent to which the people are exposed to commodities and the cash economy. Third, the significance of barter in the face of the increasing prevalence of cash is discussed. While almost everything can now be purchased for cash, the Mbuti mainly obtain commodities through the direct exchange of one commodity for another. Fourth, the most important commodity exchange for the Mbuti, meat trading, is described, and various social and economic changes caused by this meat trading are discussed.

Uneasy alliances: the spatial development of computing and communication markets

Abstract: COOKE P. and WELLS P. (1991) Uneasy alliances: the spatial development of computing and communication markets, Reg. Studies 25, 345–354. This paper explores the role of geographical space as a dynamizing element in the economic development process. It builds on the insight that space makes a significant difference to business activity by virtue of the capacity to transform products into commodities through the purchasing power of geographically dispersed commodity consumers. Following a discussion of the implications of the growth of international and global market opportunities in a context of deregulatory lowering of market barriers, the preliminary results of research into the business dispositions of computing and communications (C & C) firms is presented. This shows that, for the most part, the desire to penetrate ever-wider geographical markets is having transformative effects upon the internal and external organizational structures of such firms. COOKE P. et WELLS P. (1991) Des alliances difficiles...

Do natural resource-based industrialization strategies convey important (unrecognized) price benefits for commodity-exporting developing countries?

Abstract: Two objectives of international commodity policy have been to reduce instability in exporter's earnings and importer's prices through international (buffer stock) agreements and to encourage further processing of domestically produced commodities by developing countries. However, it appears that little attention has been given to potential interrelations between these objectives. Using the World Bank's commodity processing classification scheme this study shows that a major structural shift occurred from the mid-1960s to late 1980s in the composition of developing countries' exports toward most processed commodities, and this change was reflected to varying degrees in all major developed country import markets. However, the developing countries actually responsible for the further processing often were not major producers of the primary commodity. This finding suggests that internal constraints to commodity processing may often be more important than external barriers like escalating tariffs. This study also established that the shift resulted in developing countries receiving considerably more stable agricultural materials and ores and metals export prices--and to a lesser extent prices for foodstuffs--as well as more favorable long-term price changes. Both factors should further enhance efforts by developing countries to encourage local processing of domestically produced primary commodities.

Hedging commodity price risks in Papua New Guinea

Abstract: This paper shows that market-based financial instruments are better suited to manage external price risk for a country that is a price taker in world commodity markets. This is especially the case for mineral and energy price risks where financial instruments (such as commodity swaps) exist for hedging export earnings over long periods. For agricultural export earnings, short-term hedging tools, such as options and futures, could be used effectively. The authors design specific financial strategies that Papua New Guinea could use, and demonstrate the gains to be made from active risk management. The authors concludes that the lessons learned are not unique. Many developing countries are heavily dependent on primary commodities for foreign exchange, and their economic development has suffered from the resulting risks and instabilities. With increasing awareness of these risks and with technical assistance - strategic advice and assistance in institution building and skills training - developing countries can learn to use financial instruments to improve their economic management.

Implicit Taxation of Pakistan's Agriculture: An Analysis of the Commodity and Input Prices

Abstract: The purpose of the present paper has been to quantify and discuss the implications of implicit taxes in Pakistan's agriculture. The methodology of the paper consisted of defining the import and export parity prices of major agricultural commodities grown in Pakistan, by comparing them with domestic procurement prices. Although the analysis covered only four commodities, implicit tax rates in some of the years from 1970-71 to 1989-90 were as high as 75 percent for certain commodities. It was only in the case of IRRI rice and sugarcane that domestic prices were above the world levels in some years of the period under consideration. When shown as a percentage of the value-added by agriculture, the taxes on these four commodities, net of the total budgetary subsidies on agricultural inputs, varied from 1.9 percent to 14.9 percent. These tax rates in agriculture compared favourably with the overall tax rates in Pakistan's economy for most of the years. Judged in the light of the relative taxable capacities of agriculture and Pakistan's economy as a whole, implicit taxes were much higher in agriculture than in the other sectors of the economy.