On the First-Round Effects of International Food Price Shocks: The Role of the Asset Market Structure

2015 ◽  
Author(s):  
Rafael Portillo ◽  
Luis-Felipe Zanna
Keyword(s):  
Market Structure ◽  
Food Price ◽  
Asset Market ◽  
Price Shocks

scholarly journals On the First-Round Effects of International Food Price Shocks: the Role of the Asset Market Structure

2015 ◽  
Vol 15 (33) ◽  
pp. 1 ◽  
Author(s):  
Rafael Portillo ◽  
Luis-Felipe Zanna ◽  
◽  
Keyword(s):  
Market Structure ◽  
Food Price ◽  
Asset Market ◽  
Price Shocks

On the First-Round Effects of International Food Price Shocks

2018 ◽  
Author(s):  
Rafael Portillo ◽  
Luis-Felipe Zanna
Keyword(s):  
Developing Countries ◽  
Open Economy ◽  
Small Open Economy ◽  
Food Price ◽  
Relative Price ◽  
Asset Market ◽  
Price Shocks ◽  
Market Structures ◽  
Model Features ◽  
Food Share

The chapter presents a small open-economy model to study the first-round effects of international food-price shocks in developing countries. First-round shocks are defined as changes in headline inflation that, holding core inflation constant, help implement relative price adjustments. The model features three goods (food, a generic traded good, and a non-traded good), varying degrees of tradability of the food basket, and alternative international asset market structures. First-round effects depend crucially on the asset market structure. Under complete markets, inter-temporal substitution prevails, making the inflationary impact of international food price shocks proportional to the food share in consumption, which in developing countries is typically large. Under financial autarky, the income channel is dominant, and first-round effects are instead proportional to the country’s food trade balance, which is typically small. The results cast some doubt on the view that international food price shocks inherently have large inflationary effects in developing countries.

scholarly journals Food Price Shocks and Household Consumption in Developing Countries: The Role of Fiscal Policy

2021 ◽  
Vol 2021 (012) ◽  
pp. 1
Author(s):  
Jean-Louis Combes ◽  
Carine Meyimdjui
Keyword(s):  
Developing Countries ◽  
Fiscal Policy ◽  
Household Consumption ◽  
Food Price ◽  
Price Shocks

scholarly journals The Role of Trading Frictions in Real Asset Markets

2011 ◽  
Vol 101 (4) ◽  
pp. 1106-1143 ◽  
Author(s):  
Alessandro Gavazza
Keyword(s):  
Empirical Analysis ◽  
Capacity Utilization ◽  
Asset Markets ◽  
Asset Market ◽  
Commercial Aircraft ◽  
Average Productivity ◽  
Thin Market ◽  
Asset Allocations ◽  
The Empirical Analysis

This paper investigates how trading frictions vary with the thickness of the asset market by examining patterns of asset allocations and prices in commercial aircraft markets. The empirical analysis indicates that assets with a thinner market are less liquid—i.e., more difficult to sell. Thus, firms hold on longer to them amid profitability shocks. Hence, when markets for assets are thin, firms' average productivity and capacity utilization are lower, and the dispersions of productivity and of capacity utilization are higher. In turn, prices of assets with a thin market are lower and have a higher dispersion. (JEL A12, L11, L93)

Macroeconomic effects of world oil and food price shocks in Asia and Pacific economies: application of SVAR models

2013 ◽  
Vol 37 (3) ◽  
pp. 327-372 ◽  
Author(s):  
Fardous Alom ◽  
Bert D. Ward ◽  
Baiding Hu
Keyword(s):  
Food Price ◽  
Price Shocks ◽  
Macroeconomic Effects

scholarly journals The role of CSP in the electricity system of South Africa – technical operation, grid constraints, market structure and economics

2017 ◽  
Author(s):  
Christoph Kost ◽  
Chris Friebertshäuser ◽  
Niklas Hartmann ◽  
Thomas Fluri ◽  
Peter Nitz
Keyword(s):  
South Africa ◽  
Market Structure ◽  
Electricity System ◽  
Technical Operation

The Impact of Food Price Shocks in Uganda: First-Order Versus Long-Run Effects

2013 ◽  
Author(s):  
Bjorn Van Campenhout ◽  
Karl Pauw ◽  
Nicholas Minot
Keyword(s):  
Food Price ◽  
Price Shocks ◽  
First Order ◽  
Long Run ◽  
The Impact
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