The Use of Expectations In Agricultural Supply Response

A composite supply response model is formulated that has extrapolative and rational components as well as a partial adjustment mechanism. The model is applied to the Florida Watermelon Market to investigate how producers are forming their expectation of watermelon prices at harvest time. The results show that a dynamic cobweb mechanism is a valid representation of the data and suggests that producers are not using all the relevant information in the market.


Issue Date:
1984-08
Publication Type:
Conference Paper/ Presentation
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/278895
Language:
English
Total Pages:
16




 Record created 2018-10-24, last modified 2020-10-28

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