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Title:Cross -Commodity Price Linkages: A Cointegration Analysis of Food Markets in Java
Author(s):Idris, Hedi Muhammad
Doctoral Committee Chair(s):Nelson, G.C.
Department / Program:Agricultural and Consumer Economics
Discipline:Agricultural and Consumer Economics
Degree Granting Institution:University of Illinois at Urbana-Champaign
Subject(s):Economics, Agricultural
Abstract:Finally, this study has shown that cross-commodity price linkages do exist and it is not due to the influence of the urea price. In cointegrated markets, competitive profit-seeking activities of commodities arbitragers occur. The process of arbitrage keeps prices in different commodity markets in alignment and makes for positive price correlations among different products. For example, a supply-induced increase in the price of rice, (i.e. a rice plant disease), can lead to an increase in demand for corn and cassava and hence rises in their prices. It also induces a market intervention from the governments. In conclusion, the results from this cointegration analysis implies that government can provide a more favorable food price stabilization policy environment that promotes economic efficiency. Meanwhile, the government should also create conducive market structure for private sector initiatives.
Issue Date:2002
Description:118 p.
Thesis (Ph.D.)--University of Illinois at Urbana-Champaign, 2002.
Other Identifier(s):(MiAaPQ)AAI3044123
Date Available in IDEALS:2015-09-25
Date Deposited:2002

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