Price Transmission Mechanisms: a Policy Investigation of International Wheat Markets

This work focuses on soft wheat price transmission mechanisms between the United States and the European Union. In particular, by performing a cointegration analysis, it aims at analyzing if and to which extent the prices in the two countries were related in the years from 1978 to 2003, provided that the market of this commodity was deeply influenced by the Common Agricultural Policy. The issue of how domestic and international policy regime changes affected price transmission elasticities is also explored.