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The Impact of Macrovariables on the Farm Sector: Some Further Evidence

Published online by Cambridge University Press:  09 September 2016

Abebayehu Tegene
Abebayehu Tegene*
Affiliation:
University of Wisconsin-Milwaukeeand Resources and Technology Division, ERS, U.S. Department of Agriculture
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Abstract

Granger-causality tests and Sims' VAR technique were used to analyze the impact of macrovariables on farm output and prices in the U.S. for the period 1934-1987. Granger-causality tests show one-way causality from the macrovariables to the farm sector variables, and this is supported by impulse response functions from a VAR model. Money and interest rate effects on agricultural prices and output are apparent in the data.

Keywords

vector autoregressionGranger-causalityfarm sectornonfarm sector
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 22 , Issue 1 , July 1990 , pp. 77 - 86
Copyright
Copyright © Southern Agricultural Economics Association 1990

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