Abbott, Philip C.

By: Hatzenbuehler, Patrick L.; Abbott, Philip C.; Foster, Kenneth A.
That exchange rates strongly influence agricultural commodity prices is a widely held belief. Observed divergences in price and exchange rate correspondence over time, however, have occasionally brought this conventional wisdom into doubt. We empirically test and find evidence to support hypotheses that key supply-use factors, such as low stocks and policy shifts, intermittently cause greater responsiveness of agricultural commodity prices to exchange rate changes because they give rise to more inelastic market demand. After accounting for these longrun effects, we also find that short-run price responsiveness to exchange rate changes is sometimes greater due to overshooting factors.
By: Patterson, Paul M.; Abbott, Philip C.; Stiegert, Kyle W.
The U.S. government awarded export subsidies to agribusiness firms through the Export Enhancement Program (EEP). This study analyzes (a) whether the subsidies promoted new firm market entry and (b) whether firm characteristics influenced program participation. Trade in three commodities, poultry, wheat, and wheat flour, was analyzed using firm level data. It was found that new firm market entry was not significantly higher among subsidy recipients and that past program participation strongly influenced current program participation. Although the EEP is believed to have been administered fairly, perceived or real barriers prevented some firms from using it.