PRICE RISK MANAGEMENT STRATEGIES FOR GRAIN IMPORTERS

The presence of multiple sources of uncertainty complicates hedging decisions. One of these is the output price and its correlation with input prices. The other is how far forward a firm covers its positions. This study analyzes hedging strategies for grain importers as processors. The analytical model addresses questions of the hedge horizon and accounts for the correlation between input and output prices and exchange rate risk. A theoretical model was developed explicitly modeling the operations of a grain importing firm. The concept of strategic demand for hedging was developed in the context of an analytical model, representing the adjustment in hedge ratios in relation to the hedge horizon and input-output price correlations. Results indicated that the hedging demand diminishes as the time horizon increases, that input-output price correlations have an important impact on hedging, as does the exchange rate. The model also illustrated the impact of price controls and/or output contracting on risk exposure and the demand for hedging.price risk uncertainty, hedging, grain, importers, International Relations/Trade, Risk and Uncertainty,

(WP 2017-02) The Great Recession and Public Education

We examine the impact of the Great Recession on K-12 education finance and employment and generate five key results. First, nearly 300,000 school employees lost their jobs. Second, schools that were heavily dependent financially on state governments were particularly vulnerable to the recession. Third local revenues from the property tax actually increased during the recession, primarily because millage rates rose in response to declining property values. Fourth, inequality in school spending rose sharply during the Great Recession. Fifth, the federal government’s efforts to shield education from some of the worst effects of the recession achieved their major goal

The Evolution of Ireland's Kerry Group/PLC-Implications for the U.S. and Global Dairy-Food Industries

This Discussion Paper is a case study of Kerry Group/PLC of Ireland. Kerry grew from a small dairy cooperative (annual sales of US $50 million) in the early 1970s into an international food ingredients and consumer food products company with sales of US$2.6 billion in 1998. Kerry Group/PLC provides a model that US and other dairy-food firms interested in exporting dairy-based food ingredients or engaging in foreign direct investment in food ingredients businesses might emulate.Kerry Group/PLC of Ireland, Irish Dairy Industry, Agribusiness, Farm Management, Industrial Organization, International Development,

A comparative analysis of leaving home in the United States, the Netherlands and West Germany

We investigate how leaving the parental home differs between three countries with different welfare-state and housing systems: the USA, the Netherlands and West Germany. Using longitudinal survey data, we examine the transitions of leaving home to live with and without a partner. We find that, much more than in the European countries, union formation has become separated from leaving home in the USA. We also find a different impact of level of education and employment status on leaving-home patterns in the European countries with their social-welfare state system than in the US system in which market forces prevail. The differences are not just related to welfare-state systems but also to the sizes of the countries and the geographical dispersion of jobs and educational opportunities.Germany, household, leaving the parental home, Netherlands, union formation, USA

When Will U.S. Firms Become Major Dairy Exporters and Bigger Direct Investors in Foreign Dairy-Food Businesses?

The prospects for substantially expanded dairy exports by U.S. firms are not bright for at least the current decade. The exceptions relate to exports of dried whey, whey fractions, dairy blends, selected specialty dairy products and nonfat dry milk. U.S. dairy exports are likely to continue to be low because U.S. prices for bulk dairy products are sharply higher than world prices. Unlike the situation for dairy exporting, the barriers to foreign direct investment by U.S. firms appear less daunting. The prevalence of successful foreign direct investments by the foreign firms described here suggests that a larger number of U.S. firms could engage in such investments successfully.U.S. Dairy Exports, Foreign Direct Investment, U.S. Dairy Firms, Demand and Price Analysis, Industrial Organization, International Relations/Trade,