COMMODITY PRICE DYNAMICS AND ANTICIPATED SHOCKS

Authors
LAI CC HU SW WANG V
Citation
Cc. Lai et al., COMMODITY PRICE DYNAMICS AND ANTICIPATED SHOCKS, American journal of agricultural economics, 78(4), 1996, pp. 982-990
Citations number
20
Categorie Soggetti
Economics,"AgricultureEconomics & Policy
Journal title
American journal of agricultural economics → ACNP
ISSN journal
00029092
Volume
78
Issue
4
Year of publication
1996
Pages
982 - 990
Database
ISI
SICI code
0002-9092(1996)78:4<982:CPDAAS>2.0.ZU;2-Q
Abstract
In this paper we address the robustness of overshooting hypothesis in agricultural prices. We find that agricultural prices may undershoot t heir long-run level if the economy experiences an anticipated monetary shock rather than an unanticipated monetary shock. We also find that agricultural prices definitely display undershooting if the price of m anufactures adjusts instantaneously rather than sluggishly.