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Impacts of Inflation on Agricultural Prices: Panel Smooth Transition Regression Analysis

Author

Listed:
  • Bulent Guloglu

    (Pamukkale University)

  • Saban Nazlioglu

    (Pamukkale University)

Abstract

The purpose of this study is to examine the impact of inflation on agricultural prices. The empirical model developed in that respect was estimated for a panel of twenty eight developed and eighty three developing countries over the period 1980-2007 using panel smooth transition regression technique. The findings indicate that the impact of inflation on the agricultural prices is positive in low inflation regime and is negative in high inflation regime. Therefore, we conclude that the impact of the inflation on the agriculture prices is positive in the developed countries in which low inflation rates are observed and is negative in the developing countries in which high inflation rates are observed.

Suggested Citation

  • Bulent Guloglu & Saban Nazlioglu, 2013. "Impacts of Inflation on Agricultural Prices: Panel Smooth Transition Regression Analysis," Research Journal of Politics, Economics and Management, Sakarya University, Faculty of Economics and Administrative Sciences, vol. 1(1), pages 1-20, January.
    • Handle: RePEc:say:journl:v:1:y:2013:i:1:p:1-20
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    Cited by:

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    2. Kübra Akyol Özcan, 2023. "Food Price Bubbles: Food Price Indices of Turkey, the FAO, the OECD, and the IMF," Sustainability, MDPI, vol. 15(13), pages 1-21, June.

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    More about this item

    Keywords

    Inflation; Agricultural Prices; Developed and Developing Countries; Panel Smooth Transition Regression Model;
    All these keywords.

    JEL classification:

    • Q02 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Commodity Market
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models

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