Publisher's Synopsis
This book investigates in detail both short-run and long-run relationships between agriculture and the macroeconomy in the US economy. The major linkages between the macro and international economy and the agricultural sector have been modelled and quantified in a general theoretical framework incorporating new economic techniques. The model in this study was derived from the theoretical maximization of objective foundations of the rational agents, in the sense of new-classical macroeconomic theory. The study builds up a rigorous theoretical model of macroeconomic and agricultural linkages, including the macro-financial sector and international economy. The important and recent new development of cointegration in macroeconomic modelling has been treated throughout the empirical analysis. This study introduces new tests for unit roots and cointegrating relationships in a theoretical macroeconomic?agricultural linkages model that perform better than standard tests, and represents the first application of a test that uses the null hypothesis of cointegration to study the inter-relationship of macroeconomic?agricultural linkages, which is composed of 14 long-run equilibrium equations and is the first application of the CCR (Canonical Cointegrating Regression) approach.
