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Jean-Paul Chavas
University of Wisconsin-Madison

David Hummels
Prudue University

Brain D. Wright
University of California, Berkeley

The University of Chicago Press
ISBN: 978-0-226-12892-4

Read online - restricted to UC IP addresses.

"There has been an increase in food price instability in recent years, with varied consequences for farmers, market participants, and consumers. Before policy makers can design schemes to reduce food price uncertainty or ameliorate its effects, they must first understand the factors that have contributed to recent price instability. Does it arise primarily from technological or weather-related supply shocks, or from changes in demand like those induced by the growing use of biofuel? Does financial speculation affect food price volatility?

The researchers who contributed to The Economics of Food Price Volatility address these and other questions. They examine the forces driving both recent and historical patterns in food price volatility, as well as the effects of various public policies in affecting this volatility. The chapters include studies of the links between food and energy markets, the impact of biofuel policy on the level and variability of food prices, and the effects of weather-related disruptions in supply. The findings shed light on the way price volatility affects the welfare of farmers, traders, and consumers." - University of Chicago Press

Introduction - Jean-Paul Chavas, David Hummels, and Brian D. Wright

1. Influences of Agricultural Technology on the Size and Importance of Food Price Variability - Julian M. Alston, William J. Martin, and Philip G. Pardey, Comment: James M. MacDonald

2. Corn Production Shocks in 2012 and Beyond: Implications for Harvest Volatility - Steven T. Berry, Michael J. Roberts, and Wolfram Schlenker, Comment: Derek Headey

3. Biofuels, Binding Constraints, and Agricultural Commodity Price Volatility - Philip Abbott, Comment: Brian D. Wright

4. The Evolving Relationships between Agricultural and Energy Commodity Prices: A Shifting-Mean Vector Autoregressive Analysis - Walter Enders and Matthew T. Holt, Comment: Barry K. Goodwin

5. Bubble Troubles? Rational Storage, Mean Reversion, and Runs in Commodity Prices - Eugenio S. A. Bobenrieth, Juan R. A. Bobenrieth, and Brian D. Wright, Comment: Jock R. Anderson

6. Bubbles, Food Prices, and Speculation: Evidence from the CFTC’s Daily Large Trader Data Files - Nicole M. Aulerich, Scott H. Irwin, and Philip Garcia, Comment: Aaron Smith

7. Food Price Volatility and Domestic Stabilization Policies in Developing Countries - Christophe Gouel, Comment: Shenggen Fan

8. Food Price Spikes, Price Insulation, and Poverty - Kym Anderson, Maros Ivanic, and William J. Martin, Comment: Marc F. Bellemare

9. Trade Insulation as Social Protection - Quy-Toan Do, Andrei A. Levchenko, and Martin Ravallion, Comment: Ron Trostle