@article{Liapis:278253,
      recid = {278253},
      author = {Liapis, Peter S.},
      title = {Estimation and Evaluation of Economic Community Wheat  Export Subsidies},
      address = {1989-11},
      number = {1486-2018-6268},
      series = {AGES 89-55},
      pages = {39},
      year = {1989},
      abstract = {This report uses Granger's notion of causality to examine  the relationship between the EC export subsidies and U.S.  wheat export prices. The hypothesis that the EC's per unit  export subsidy does not "cause" U.S., world, or EC export  prices in the short run cannot be rejected, nor can the  hypothesis be rejected that the U.S. or the world wheat  price does not "cause" the per unit wheat subsidy. The  results suggest a one-way causal relationship between EC  exports and EC export price, but neither the export volume  nor the per unit subsidy "cause" U.S. wheat export prices.  The hypothesis that EC wheat exports are not caused by U.S.  export prices is rejected, but causation is one directional  without feedback; EC exports do not cause U.S. export  prices. In determining the level of the monthly per unit  subsidy granted, the EC responds to changes in the price of  U.S. corn, but not to changes in the price of U.S. wheat,  indicating that EC wheat competes with feed grains rather  than U.S. wheat. The refund level also depends upon the  ECU-U.S. dollar exchange rate. A 10-percent devaluation of  the dollar relative to the ECU results in a 15-percent  increase in the maximum wheat subsidy.},
      url = {http://ageconsearch.umn.edu/record/278253},
      doi = {https://doi.org/10.22004/ag.econ.278253},
}