Railroad Rate Deregulation and Uncertainly of Farm‐Level Prices for Corn
1989
Sarwar, Ghulam | Anderson, Dale G.
Uncertainty of country elevator prices for corn, in terms of error‐variance and mean‐squared forecast errors, failed to increase in response to the deregulation in 1980 of railroad rates. Regression analysis was used to separate the uncertainty impacts of deregulation from those of other unanticipated changes in supply and demand. Factors influencing uncertainty included unexpected changes in storage costs, export demand, corn futures, and rail car utilization. Some of the factors creating price uncertainty prior to deregulation were replaced by new uncertainty factors occurring as a result of deregulation.
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