Long‐run Relationships Between World Vegetable Oil Prices

In the international edible oil markets, there is believed to be high substitutability between vegetable oils and fats produced under different conditions. In light of this, we consider the question: what is the nature of the long‐run relationships between vegetable oil prices? Long‐run co‐movements among oil prices are analysed, based on a multivariate cointegration model. The empirical finding is that most co‐movements are consistent with the predictions of market theory. Prices of oils tend to be grouped according to their different end‐uses. Some policy implications of a buffer stock scheme are discussed.


Issue Date:
1997
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/118058
Published in:
Australian Journal of Agricultural and Resource Economics, Volume 41, Issue 4
Page range:
455-470
Total Pages:
16




 Record created 2017-04-01, last modified 2017-08-22

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