Publication Date


Series Number

96-WP 154


U.S. wheat producers contend that Canadian production subsidies and implicit export subsidies have undermined the U.S. price support program. The authors examine this contention and assess the relationships between U.S. and Canadian wheat prices using a cointegration and error approach. The results suggest that both U.S. durum and hard spring wheat prices respond to restore the equilibrium relationship with the corresponding Canadian price while the Canadian price does not respond to restore equilibria.