Elasticity characterization by means of equilibrium models for maize and soybean markets

Abstract

This article considers simultaneous equilibrium models for the Brazilian markets of maize, soybean seed, soybean meal, and soybean. Estimated elasticities, ceteris paribus, can be used directly or to calibrate computable equilibrium models. The models are estimated in tree groups: soybean seed, soybean meal and oil, and maize. The number of available observations does not allow simultaneous estimation for the three groups. A further analysis of the soybean market investigates the effect of an exchange rate shock, exploring the cointegration between exchange rate and fertilizer price.