TY  - RPRT
AB  - This paper presents an econometric analysis of the effects of price support programs
and stocks on price dynamics and price volatility. Considering a price support program as a
censoring mechanism, market prices are specified as a dynamic Tobit model with time
varying volatility. The model is applied to the U.S. nonfat dry milk market to examine the
impact of market liberalization on price dynamics and price volatility in the presence of
private and public stocks. The econometric results show how the price support program and
stocks (both private and public) affect expected price and price volatility. They document the
role of stocks in reducing price volatility.
AU  - Kim, Kwansoo
AU  - Chavas, Jean-Paul
DA  - 2002
DA  - 2002
DO  - 10.22004/ag.econ.201558
DO  - doi
ID  - 201558
KW  - Food Consumption/Nutrition/Food Safety
KW  - Research and Development/Tech Change/Emerging Technologies
KW  - Research Methods/Statistical Methods
L1  - https://ageconsearch.umn.edu/record/201558/files/wp2002-2.PDF
L2  - https://ageconsearch.umn.edu/record/201558/files/wp2002-2.PDF
L4  - https://ageconsearch.umn.edu/record/201558/files/wp2002-2.PDF
LA  - eng
LK  - https://ageconsearch.umn.edu/record/201558/files/wp2002-2.PDF
N2  - This paper presents an econometric analysis of the effects of price support programs
and stocks on price dynamics and price volatility. Considering a price support program as a
censoring mechanism, market prices are specified as a dynamic Tobit model with time
varying volatility. The model is applied to the U.S. nonfat dry milk market to examine the
impact of market liberalization on price dynamics and price volatility in the presence of
private and public stocks. The econometric results show how the price support program and
stocks (both private and public) affect expected price and price volatility. They document the
role of stocks in reducing price volatility.
PY  - 2002
PY  - 2002
T1  - The Effects of Stocks and Price Floors on Price Dynamics and Volatility: An Application to the U.S. Nonfat Dry Milk Market
TI  - The Effects of Stocks and Price Floors on Price Dynamics and Volatility: An Application to the U.S. Nonfat Dry Milk Market
UR  - https://ageconsearch.umn.edu/record/201558/files/wp2002-2.PDF
Y1  - 2002
T2  - FSWP
T2  - 2002-02
ER  -