Drivers and triggers of international food price spikes and volatility

The objective of this study is to explore empirical evidence on the quantitative importance of supply, demand, and market shocks for price changes in international food commodity markets. To this end, it distinguishes between root, conditional, and internal drivers of price changes using three empir...

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Autores principales: Tadesse, Getaw, Algieri, Bernardina, Kalkuhl, Matthias, von Braun, Joachim
Formato: Journal Article
Lenguaje:Inglés
Publicado: Elsevier 2014
Materias:
Acceso en línea:https://hdl.handle.net/10568/151361
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author Tadesse, Getaw
Algieri, Bernardina
Kalkuhl, Matthias
von Braun, Joachim
author_browse Algieri, Bernardina
Kalkuhl, Matthias
Tadesse, Getaw
von Braun, Joachim
author_facet Tadesse, Getaw
Algieri, Bernardina
Kalkuhl, Matthias
von Braun, Joachim
author_sort Tadesse, Getaw
collection Repository of Agricultural Research Outputs (CGSpace)
description The objective of this study is to explore empirical evidence on the quantitative importance of supply, demand, and market shocks for price changes in international food commodity markets. To this end, it distinguishes between root, conditional, and internal drivers of price changes using three empirical models: (1) a price spike model where monthly food price returns (spikes) are estimated against oil prices, supply and demand shocks, and excessive speculative activity; (2) a volatility model where annualized monthly variability of food prices is estimated against the same set of variables plus a financial crises index; and (3) a trigger model that estimates extreme values of price spikes and volatility using quantile regressions. The results point to the increasing linkages among food, energy, and financial markets, which explain much of the observed food price spikes and volatility. While financial speculation amplifies short-term price spikes, oil price volatility intensifies medium-term price volatility.
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spelling CGSpace1513612025-09-25T13:01:45Z Drivers and triggers of international food price spikes and volatility Tadesse, Getaw Algieri, Bernardina Kalkuhl, Matthias von Braun, Joachim price volatility food prices commodity markets The objective of this study is to explore empirical evidence on the quantitative importance of supply, demand, and market shocks for price changes in international food commodity markets. To this end, it distinguishes between root, conditional, and internal drivers of price changes using three empirical models: (1) a price spike model where monthly food price returns (spikes) are estimated against oil prices, supply and demand shocks, and excessive speculative activity; (2) a volatility model where annualized monthly variability of food prices is estimated against the same set of variables plus a financial crises index; and (3) a trigger model that estimates extreme values of price spikes and volatility using quantile regressions. The results point to the increasing linkages among food, energy, and financial markets, which explain much of the observed food price spikes and volatility. While financial speculation amplifies short-term price spikes, oil price volatility intensifies medium-term price volatility. 2014-08 2024-08-01T02:56:51Z 2024-08-01T02:56:51Z Journal Article https://hdl.handle.net/10568/151361 en Open Access Elsevier Tadesse, Getaw; Algieri, Bernardina; Kalkuhl, Matthias; and von Braun, Joachim. 2014. Drivers and triggers of international food price spikes and volatility. Food Policy 47(August 2014): 117-128. https://doi.org/10.1016/j.foodpol.2013.08.014
spellingShingle price volatility
food prices
commodity markets
Tadesse, Getaw
Algieri, Bernardina
Kalkuhl, Matthias
von Braun, Joachim
Drivers and triggers of international food price spikes and volatility
title Drivers and triggers of international food price spikes and volatility
title_full Drivers and triggers of international food price spikes and volatility
title_fullStr Drivers and triggers of international food price spikes and volatility
title_full_unstemmed Drivers and triggers of international food price spikes and volatility
title_short Drivers and triggers of international food price spikes and volatility
title_sort drivers and triggers of international food price spikes and volatility
topic price volatility
food prices
commodity markets
url https://hdl.handle.net/10568/151361
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AT algieribernardina driversandtriggersofinternationalfoodpricespikesandvolatility
AT kalkuhlmatthias driversandtriggersofinternationalfoodpricespikesandvolatility
AT vonbraunjoachim driversandtriggersofinternationalfoodpricespikesandvolatility