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Is there Price Distortion in the Philippine Rice Market: A Bayesian Discrete Wavelet Transform Analysis

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  • Vicente E. Montano

    (College of Business Administration Education, University of Mindanao)

Abstract

This study uses Bayesian Discrete Wavelet Transform (DWT) analysis to determine the existence of price distortions in the Philippine rice market. Using the world rice price as a benchmark, the study investigates residual fluctuations in rice prices from March 2023 to October 2024 at different frequency levels. The results show significant distortions at the approximation and detail coefficient levels, indicating inefficiencies influenced by market dynamics, policy interventions, and global trends. The Bayesian DWT approach detects localized price anomalies, thus enabling policymakers to examine market behavior and formulate stabilization policies in response to rice price fluctuations.

Suggested Citation

  • Vicente E. Montano, 2024. "Is there Price Distortion in the Philippine Rice Market: A Bayesian Discrete Wavelet Transform Analysis," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(15), pages 275-287, December.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:15:p:275-287
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