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A Spatiotemporal Analysis of Agricultural Prices: An Application to Colombian Data

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  • Ana María Iregui
  • Jesús Otero

Abstract

This paper studies whether the geographical separation of markets constitutes a factor that helps explain the dynamics of agricultural prices. To do this, we employ a highly disaggregated dataset for Colombia that consists of weekly observations on wholesale prices for 18 agricultural products traded in markets scattered around the country. The sample period spans for almost a decade. According to our results, which are based on generalised impulse response functions, distance (and thus transportation costs) is a factor that helps explain the speed at which prices adjust to shocks in other locations, thus confirming that price adjustments take longer for markets farther apart.
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Suggested Citation

  • Ana María Iregui & Jesús Otero, 2013. "A Spatiotemporal Analysis of Agricultural Prices: An Application to Colombian Data," Agribusiness, John Wiley & Sons, Ltd., vol. 29(4), pages 497-508, September.
    • Handle: RePEc:wly:agribz:v:29:y:2013:i:4:p:497-508
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    File URL: http://hdl.handle.net/10.1002/agr.v29.4
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    Cited by:

    1. Lan Yi & Congcong Duan & Jianping Tao & Yong Huang & Meihua Xing & Zhongkun Zhu & Caifeng Tan & Xinglin Chen, 2020. "Disease Outbreak, Health Scare, and Distance Decay: Evidence from HPAI Shocks in Chinese Meat Sector," IJERPH, MDPI, vol. 17(21), pages 1-35, October.
    2. Margarita Gáfaro & Jair N. Ojeda-Joya & Andrea Paola Poveda-Olarte, 2020. "Abastecimiento y costos de transacción en los mercados de alimentos de las principales ciudades de Colombia," Borradores de Economia 1128, Banco de la Republica de Colombia.

    More about this item

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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