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The Price Volatility of Beef and Pig Meat in Romania

Author

Listed:
  • Cecilia ALEXANDRI

    (Institute of Agricultural Economics, Romanian Academy, Bucharest)

  • Corina SAMAN

    (Institute of Agricultural Economics, Romanian Academy, Bucharest)

Abstract

This paper analyzes the prices and price volatility for beef and pigmeat in Romania and compares them with international prices and price volatility. GARCH type processes are used to estimate price volatility. The empirical results indicate that the growth trend in pigmeat prices, in Romania and globally, is accompanied by high volatility throughout the period with significant increases in 2008, 2010 and 2014 for Romania and 2007–2008, 2012 and 2014 for world prices. Beef prices on both markets show a steady upward trend until 2015 and a high volatility during the global economic crisis, only to fall sharply afterwards. After 2015, beef prices experienced a significant decrease and a slightly increased volatility worldwide. Generally, the increased price volatility periods can be associated with significant increases in the corresponding prices or other global events (financial crisis, food price crises).

Suggested Citation

  • Cecilia ALEXANDRI & Corina SAMAN, 2017. "The Price Volatility of Beef and Pig Meat in Romania," Agricultural Economics and Rural Development, Institute of Agricultural Economics, vol. 14(2), pages 165-173.
    • Handle: RePEc:iag:reviea:v:14:y:2017:i:2:p:165-173
    as

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    References listed on IDEAS

    as
    1. Johan Swinnen, 2011. "The Right Price of Food," Development Policy Review, Overseas Development Institute, vol. 29(6), pages 667-688, November.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    price volatility; agricultural prices; Romania; GARCH;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices

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