Price Transmission of Chicken: Usage of Vector Autoregressive Markov-Switching (MSVAR) Approach

Document Type : Research Paper

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Abstract

Price Transmission of Chicken: Application of Vector Autoregressive Markov-Switching (MSVAR) Approach In this study, the factors that influence the price transmission of chicken were analyzed using the Markov-Switching VAR and weekly data for the years 2008-2012. The results showed that the non-linear behavior of price transmission model inputs and the price of one-day chicks, soybeans and corn influence on the prices of chicken meat. In this regard, it is suggested that policy-makers with implement the policy of "market adjustment" and the control of "marketing agents behavior", cause the reduction of price volatility chicken and increase the consumer welfare. JEL Classification: Q1, C32, C52. Key words: Poultry, Vector Autoregressive Markov Switching Model, One-old chick, Soybean, Corn. JEL Classification: Q1, C32, C52. Key words: Poultry, Vector Autoregressive Markov Switching Model, One-old chick, Soybean, Corn. JEL Classification: Q1, C32, C52. Key words: Poultry, Vector Autoregressive Markov Switching Model, One-old chick, Soybean, Corn.

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