Files in this item



application/pdfHala_Zahran.pdf (1MB)
(no description provided)PDF


Title:Biodiesel profitability and linkages to the soybean oil market
Author(s):Zahran, Hala
Advisor(s):Irwin, Scott H.
Department / Program:Agr & Consumer Economics
Discipline:Agricultural & Applied Econ
Degree Granting Institution:University of Illinois at Urbana-Champaign
vector error correction model
long run equilibrium
zero profit relationship
Abstract:This thesis investigates the relationship between soybean oil and biodiesel markets in the US through a structural model and a time-series econometric model. A conceptual link is built based on the theories of market efficiencies and implications of a binding mandate on supply and demand. We hypothesize that a long run zero-profit relationship governs the biodiesel and soybean oil pricing relationships. We test for this using a structural model based on an Iowa biodiesel plant. We additionally use formal time series testing including Johansen Trace test and a vector error correction model and the Kejriwal and Perron test. We find that under certain policy conditions our hypothesis holds but not throughout the sample studied.
Issue Date:2013-08-22
Rights Information:Copyright 2013 Hala Zahran
Date Available in IDEALS:2013-08-22
Date Deposited:2013-08

This item appears in the following Collection(s)

Item Statistics