Estimation of Rational Risk Response Models for Storable Primary Commodities

Stochastic-dynamic programming and disequilibrium econometric methods are combined to obtain maximum likelihood estimates of a dynamic nonlinear rational expectations model of a market for a storable primary commodity. The structural model captures the essential processes governing the dynamics of primary commodity markets including: the nontrivial role of private speculative stockholding, the inherently nonlinear disequilibrium effects of government buffer stock intervention, and the complex roles of expectations and risk in private supply and stockholding decisions.


Issue Date:
1991-03
Publication Type:
Conference Paper/ Presentation
Record Identifier:
http://ageconsearch.umn.edu/record/271551
Language:
English
Total Pages:
34




 Record created 2018-04-17, last modified 2018-04-17

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