Responding to the Coffee Crisis: What Can We Learn from Price Dynamics

摘要: An econometric model of coffee price dynamics is specified and estimated to capture the evolution prices at farm, wholesale retail levels. It investigates historical influence International Coffee Agreement (ICA) through its effects on yield planting decisions. In short run, ICA caused Brazilian farm become disconnected from international prices. The helped producers better incorporate current world information into This created a cycle that did not exist in non-ICA periods. low experienced since disintegration are consistent with supply response information. Asymmetric transmission level roasters retailers benefit upstream interventions. Our results urge caution when considering future