vertical price transmission and non-linear price adjustments in the beef market of east azarbaijan province
Authors
abstract
this study considers the price transmission mechanism between farm and retail levels of beef market in east azerbaijan with weekly prices over 1377:1 to 1390:52 periods. to this end, using advantages of multivariate models, hansen- seo (2002)'s two- regime threshold vector error correction model (tvecm) was estimated by the maximum likelihood approach for evaluate the price transmission mechanism. results of adf and pp unit root tests show that both farm and retail prices are integrated in order 1 and the results of johansson co-integration test suggests that there is a long- run relationship between the two series of price. in the next step, the result of sup-lm test indicates that there is non-linear co-integration relation between two variables. finally, based on the results of estimated error correction coefficients in tvecm, the price transmission has asymmetry behavior and both of the retail and farm prices response to positive shocks more than negative, especially retailers increase prices more fast than the farmers when the other prices increase. by declining the price in one level of the market, farmers would be response more quick than the retailers.
similar resources
Price Transmission Analysis in Iran Chicken Market
Over the past three decades vertical price transmission analysis has been the subject of considerable attention in applied agricultural conomics. It has been argued that the existence of asymmetric price transmission generates rents for marketing and processing agents. Retail prices allegedly move faster upwards than downwards in response to farm level pricemovements. This is an important issue...
full textprice volatility spillover effects in beef market of tehran province
the price volatility spillover effect indicates that price volatility in different markets can be mutually affected. the objective of the study is to analyze volatility price spillover effects on the vertical levels including input, wholesale and retail sale levels in the tehran beef supply chain. the multivariate generalized autoregressive conditional heteroskedastic (mvgarch) model was used b...
full textPrice Transmission Mechanism in the Iranian Rice Market
In this article, we estimate the vertical price transmission through the Iranian rice marketing chain by usingmonthly data from March 2000 to February, 2009 and error correction model (ECM).The causality testresults indicate that changes in the producer price clearly led changes in wholesale and retail prices. InProducer-Retail and Wholesale-Retail models, price transmission is asymmetric but i...
full textNon-Linear Relationships Among Oil Price, Gold Price and Stock Market Returns in Iran: A Multivariate Regime-Switching Approach
In this paper, the effects of oil and gold prices on stock market index are investigated. We use a cointegrated vector autoregressive Markov-switching model to examine the nonlinear properties of these three variables during the period of January 2003 - December 2014. The Markov-switching vector-equilibrium-correction model with three regimes representing "deep recession", "mild recession" and ...
full textVertical Price Transmission on the Iran Lamb Meat Market
In the present paper, it is studied the price relations and how price is transmitted between the producer level and the consumer level for lamb meat. Data used in the research include consumer price index and producer price index for lamb meat covering monthly periods of 91 months since March 2001 through September 2008. Johansen's and Juselius's cointegration method and Granger causality test ...
full textMy Resources
Save resource for easier access later
Journal title:
تحقیقات اقتصاد و توسعه کشاورزی ایرانجلد ۴۶، شماره ۱، صفحات ۱۳-۲۰
Keywords
Hosted on Doprax cloud platform doprax.com
copyright © 2015-2023