Export Restrictions and Multiple Spatial Price Equilibria: Export Quotas for Wheat in Ukraine
No hay miniatura disponible
Fecha
Título de la revista
ISSN de la revista
Título del volumen
Editor
Resumen
Descripción
Relatively few models exist that allow for regime-dependent spatial price equilibria. This
paper focuses on temporary export restrictions during international commodity price peaks.
Theory suggests that export restrictions have price insulating effects and lead to multiple
spatial equilibria between domestic and world market prices. Our analysis is unique in that it
tests for linear versus non-linear cointegration within a smooth transition cointegration
model. Applying this model to the wheat export quota in Ukraine shows that the domestic
wheat price was stabilised approximately 30% below the international wheat price during the
two recent price spikes. From a global point of view, the domestic wheat price in Ukraine
would have increased to the same degree if no country had engaged in price insulating
behaviour worldwide from 2006 to 2008.