Price Transmission Between the U. S. Gulf Ports and Foreign Farm Markets

摘要

Perfect price transmission is often used as a convenient simplification in models measuring elasticity of foreign demand. This paper employs the UN-FAO data base of internal farm prices for wheat, corn, and soybeans in selected countries and the U.S. Gulf Ports price for these respective commodities as a measure of world price to show price transmission from the world market to the farm in these countries under several model specifications.