Analysis of the cobweb theorem in the context of different models: The case of potato

Economic fluctuation is one of the areas that economic theory has generated thories and solutions most. The business cycle movements has been commonly encountered in the prices of agricultural products. In this study, the relationship between potato production and prices of potato is examined within the context of Cobweb Models. In this study the relationship between potato prices and potato production is analyzed in the context of Almon Model and Cobweb Theorem which states that production follows the prices one year delayed. A positive correlation is observed between patato prices and current period production volume by using Koyck Model. However, it is detected that volume of production is less influenced by delayed value of price for each time. The models that demonstrate polynomial behavior between production value and prices are analyzed by Almon Model. Considering the facts, it can be concluded that Cobweb Theory can not be explained by using Almon Model. Keywords: 1. Cobweb Theorem, 2. Koyck Model, 3. Almon Model, 4. Potatoes