ABSTRACT
This chapter discusses the International Natural Rubber Agreement (INRA) in detail. A quarterly model of the NR market is presented in the third section, with which the performance of the INRA is evaluated in the fourth section. The equations of the quarterly model are presented in Appendix B. The complete model consists of Rubber trees can reach the age of 60 years or older, but the yield per tree is not constant. Short-term demand for NR is described below as being based among other things on total rubber demand and prices. The main detennining endogenous factors of the prices are total world rubber consumption, opening stocks and expected production, the latter of which was represented by the four-quarter average, lagged by two quarters. First, the prices pertain to commodities that are required by an industry that also uses rubber, and thus the PMOM complements the variable describing total rubber demand.
