Price Transmission in Different Levels of Iran's Citrus Market; Monthly Price Data Approach
Author(s):
Abstract:
This study investigates price transmission in citrus market and in different levels as producer, wholesaler and retailer using Error Correction Method (ECM). For this purpose monthly data was used. According to monthly data, first seasonal unit root was investigated. Based on their observations in the seasonal adjustment process, the transmission pattern of the domestic market price for the desired products was estimated. The results of estimation of price transmission model show asymmetric transmission in citrus market and in different levels. Only in orange market there is symmetric price transmission in long run between levels of wholesaler producer. Also, in tangerine market there is symmetric price transmission in short run between levels of wholesaler retailer and in wholesaler producer. According to this results, market size and speed of price transmission in different levels of citrus market was different. Based on the importance of price transmission and its relation with market efficiency, it is suggested that control and market regulation policies with the aim of establishing symmetric structure in market are made.
Keywords:
Language:
Persian
Published:
Agricultural Economic and Development, Volume:24 Issue: 96, 2017
Page:
1
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