Estimates for Evolution of U.S. Rice Supply Response Using Implicit Revenue Functions: Implications to the World Food Supply and Trade

抄録

This research analyzes the evolution of rice supply responsiveness in the U.S. for the past three and a half decades using an implicit revenue function approach. Detailed government program provisions were incorporated into supply function estimates for each of four different periods. Although conventional wisdom maintains that the rice supply response is inelastic, the results of this research indicate that the supply curve has not only shifted outward but flattened, becoming more price-responsive in conjunction with lower market prices, over time. Accordingly, a demand shock may result in less fluctuation in market prices, implying that world market prices are becoming more stable over time and that exporters have to face more competition.