The cyclicality in Norwegian farmed atlantic salmon market : the approach of cobweb model

Abstract

In this article, I estimate the cobweb model for Norwegian farmed Atlantic salmon market that allows me to verify the cyclicality of the market, and the simulations that based on the estimation indicates the evaluation of the model’s explanatory ability for the cyclicality. By using annual panel data from 1994 to 2011, I found that the cobweb structure explains some part of the cyclicality. This result makes a contribution to understand about the market and make a policy for reducing the cyclicality that deteriorate the profitability of supplier in long-term.