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European Review of Agriculture Economics Vol 26 (1) (1999) pp.59-77
© 1999 Oxford University Press and the Foundation for the European Review of Agricultural Economics

Stock-outs and supply response estimation under rational expectations

DL Frechette

Department of Agricultural Economics and Rural Sociology, 208-C Armsby Building, Pennsylvania State University, University Park, PA 16802, USA
e-mail: Frechette@psu.edu

Summary

The relationship between economic fundamentals and the likelihood of a stock-out is investigated using an annual storage model with rational expectations. The likelihood of a stock-out is then examined as a source of bias in econometric estimates of supply response.

Keywords:storage, rational expectations, supply response


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