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Forecasting Organic Food Prices: Testing and Evaluating Conditional Predictive Ability

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  • Park, Timothy A.
  • Gubanova, Tatiana
  • Lohr, Luanne
  • Escalante, Cesar L.

Abstract

Organic farmers, wholesalers, and retailers need reliable price forecasts to improve their decision- making practices. This paper presents a methodology and protocol to select the best-performing method from several time and frequency domain candidates. Weekly farmgate prices for organic fresh produce are used. Forecasting methods are evaluated on the basis of an aggregate accuracy measure and several out-of-sample predictive ability tests. Combining forecasts to improve on individual forecasts is investigated.

Suggested Citation

  • Park, Timothy A. & Gubanova, Tatiana & Lohr, Luanne & Escalante, Cesar L., 2005. "Forecasting Organic Food Prices: Testing and Evaluating Conditional Predictive Ability," 2005 Annual meeting, July 24-27, Providence, RI 19412, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea05:19412
    DOI: 10.22004/ag.econ.19412
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    References listed on IDEAS

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    1. Raffaella Giacomini & Halbert White, 2006. "Tests of Conditional Predictive Ability," Econometrica, Econometric Society, vol. 74(6), pages 1545-1578, November.
    2. Henriksson, Roy D & Merton, Robert C, 1981. "On Market Timing and Investment Performance. II. Statistical Procedures for Evaluating Forecasting Skills," The Journal of Business, University of Chicago Press, vol. 54(4), pages 513-533, October.
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    5. Diebold, Francis X & Mariano, Roberto S, 2002. "Comparing Predictive Accuracy," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(1), pages 134-144, January.
    6. William G. Tomek & Robert J. Myers, 1993. "Empirical Analysis of Agricultural Commodity Prices: A Viewpoint," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 15(1), pages 181-202.
    7. Timothy A. Park & Luanne Lohr, 1996. "Supply and Demand Factors for Organic Produce," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 647-655.
    8. Merton, Robert C, 1981. "On Market Timing and Investment Performance. I. An Equilibrium Theory of Value for Market Forecasts," The Journal of Business, University of Chicago Press, vol. 54(3), pages 363-406, July.
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    Cited by:

    1. Curtis, Kynda R. & Yeager, Irvin & Black, Brent & Drost, Daniel & Ward, Ruby, 2014. "Market and Pricing Potential for Extended Season Fresh Produce Sales: An Intermountain West Example," Journal of Food Distribution Research, Food Distribution Research Society, vol. 45(2), pages 1-20, July.

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