This paper explores supply response models in a rational expectations framework with endogenous risk by using a multivariate GARCH model with Cholesky decomposition. This approach allows the incorporation of price volatility as a risk factor into the supply response of a primary commodity sector...

This paper investigates the supply response of the Greek sheepmeat market and examines the effects of the Common Agricultural Policy (CAP) reforms in the Greek sheepmeat industry during the period 1993-2005. The nonlinear asymmetric GARCH (NAGARCH) process is used to estimate expected price and...