Template-Type: ReDIF-Paper 1.0
Author-Name: Scott C. Bradford
Author-Name-First: Scott
Author-Name-Last: C. Bradford
Author-Email: bradford@byu.edu
Author-Workplace-Name: Brigham Young University
Author-Name: Digvijay  Singh Negi
Author-Name-First: Digvijay 
Author-Name-Last: Singh Negi
Author-Email: digvijay@igidr.ac.in
Author-Workplace-Name: Indira Gandhi Institute of Development Research
Author-Name: Bharat  Ramaswami
Author-Name-First: Bharat 
Author-Name-Last: Ramaswami
Author-Email: bharat.ramaswami@ashoka.edu.in
Author-Workplace-Name: Ashoka University
Title: International Risk Sharing for Food Staples
Abstract: The global output of food staples is far more stable than most individual nations’ outputs, but does this lead to consumption risk sharing? This paper applies tools from the risk sharing literature to address this question for rice, wheat, and maize, using a multilateral risk sharing model that, unlike the canonical model, accounts for trade costs. While the data show that optimal risk sharing does not occur, the wheat market comes closest to the idealized model. Our analysis also implies that both trade and storage play significant roles in smoothing domestic output shocks. Further, we find that risk sharing tends to rise with a nation’s income.
length: 74
Creation-Date: 20220221
Revision-Date: 
Publication-Status: 
File-URL: https://dp.ashoka.edu.in/ash/wpaper/paper74_0.pdf
File-Format: Application/pdf 
Number: 74
Keywords: food markets
Keywords: risk sharing
Keywords: international trade
Keywords: supply shocks
Handle: RePEc:ash:wpaper:74