A policy analysis of the United States vegetable oilseeds, oils, and oil products industry with special emphasis on optimal control.
MetadataShow full item record
The objectives of the study were to develop a discrete dynamic model to explain the duality of supply flows from production and inventory-stocks, to specify a monthly sectoral model of the United States vegetable oilseeds, oils, and oil products industry, to analyze policy alternatives using simulation, and to evaluate the potential of optimal control theory for stabilizing prices in the industry.
A theoretical model of consumer and producer behavior was developed which, following optimization and aggregation, yielded a 4 equation simultaneous representation of a general market system. On the basis of the theoretical model an empirical model of the industry was constructed which included 4 sub-models, each simultaneous or block simultaneous in structure. The first sub-model consisted of 14 equations and included the final products of the industry--cooking oil, shortening, ma.rgarine, and peanut butter. The second industry sub-model consisted of 17 equations and included the markets for finished soybean oil, semi-finished soybean oil, soybeans, and soybean meal. The third industry sub-model consisted of 18 equations and included the markets for finished and semi-finished cottonseed oil, peanut oil, and peanuts. The fourth sub-model consisted of 10 equations and included the markets for palm and coconut oil. Each sub-model was estimated using OLS or 3SLS. The data base consisted of 136 observations covering the period January 1965 to April 1976.
- Doctoral Dissertations