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A Critique of Exchange Rate Treatment in Agricultural Trade Models

1979/05/01 by Robert G. Chambers, Richard E. Just · 1 citation
Economics, Econometrics and Finance · #Economics of Agriculture and Food Markets #Global trade and economics

paper · doi:10.2307/1239729

Abstract

Abstract The recent theoretical and empirical literature on the role of exchange rates in agricultural prices and trade is reviewed. Specifically, alternative specifications of the exchange rate in excess demand functions are considered. Results show that the specification most common in recent theoretical and empirical work is unnecessarily restrictive and may bias the resulting analysis. Several less restrictive specifications for empirical research are suggested.

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