摘要：World production shortfalls and increased speculative activity have been suggested as major causes of recent, dramatic price increases for sugar. A two-region spatial equilibrium model analyzes the U.S. and the rest-of-the-world sugar markets. By systematically shifting the rest-of-the-world supply curve, the model examines the direct effects of supply shifts on the market equilibrium. High sugar price levels can be explained largely by reduced supplies on the world market.
