Commodity prices cycles have a negative effect in developing countries. This paper applies system dynamics to study the long term cyclical behavior of coffee price. The model is based in Meadows (1970) and Deaton and Laroque (1996, 2003). The model includes the price dynamics, investments, capacity, and demand. Our model is the first stages and not fully calibrated. Nevertheless, the model provides a better understanding of the commodity cycles, focusing on the internal structure of the system. The model replicates the reference mode, thus, coffee price exhibits cyclical behavior in the long term. In particular, we have founded very difficult the estimation of investment functions; therefore, future work will be focus on validation and use of laboratory experiments to estimate investment function with coffee farmers.

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Date created

• 2009 July 26-2009 July 30

Type

• Document

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• Processing documentation available at: https://wiki.albany.edu/display/SCA/Processing+Ingested+Digital+Files

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• Creative Commons BY-NC-ND Attribution-NonCommercial-NoDerivs 4.0 International

  
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4818cb531cdd68d6ec6af3f291216fc7

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b3584c6b53c3f58e0202549d7d851f84

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23d738ba88f8333bc39725f9cb5bd0b8

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Collection

System Dynamic Society Records

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Collecting area

• This collection is part of the University Archives