Analyzing Market Price Transmission, Government Intervention and Weather Shocks for Rice Market in the Philippines
AbstractIn the Philippines, where rice is considered the most important food crop, attempts to influence rice prices have been prevalent. The government, through National Food Authority (NFA) has sought to establish stocks and control imports to stabilize prices since its establishment in 1972 to support farm gate prices and reduce retail price of rice. But data shows divergence in retail prices and farm prices since mid 1960s. In this paper, we use vector autoregression (VAR) to analyze the movement of Philippine rice margins with government stocks and weather supply shocks to able to determine government effectiveness in actual times of market stress. Comparing VARs across regions, we are able to identify the regions in which price margins are significantly affected by government intervention measures.
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Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania with number 103163.
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Vector-auto-regression; Price-Margin; Rice; Philippines; Policy; Agricultural and Food Policy; Demand and Price Analysis; Q11; Q13; Q18;
Find related papers by JEL classification:
- Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
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- NEP-ALL-2011-05-07 (All new papers)
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