Threshold Effects and Asymmetric Price Adjustments within the Ghanaian Maize Market

Henry de-Graft Acquah

Journal of Economics and Behavioral Studies, 2012, vol. 4, issue 9, 497-504

Abstract: This study investigated co integration and asymmetric adjustments in the end equilibrium between Ghanaian retail and wholesale maize markets using the Enders and Siklos technique. Two competing models, namely Consistent Threshold Autoregressive (C-TAR) and Consistent Momentum Threshold Autoregressive (C-MTAR) models were estimated. Following the application of a standard model selection technique, CMTAR model is selected as most appropriate. The results of the C-MTAR model confirm that the retail and wholesale prices of maize in Ghana are co integrated with threshold adjustment. Furthermore, it suggests that the process is asymmetric when the retail and wholesale prices of Ghanaian maize adjust to achieve the longterm equilibrium. Additionally, the adjustment is relatively faster when the price differential is increasing than when it is decreasing.

Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ojs.amhinternational.com/index.php/jebs/article/view/351/351 (application/pdf)
https://ojs.amhinternational.com/index.php/jebs/article/view/351 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rnd:arjebs:v:4:y:2012:i:9:p:497-504

DOI: 10.22610/jebs.v4i9.351

Access Statistics for this article

More articles in Journal of Economics and Behavioral Studies from AMH International
Bibliographic data for series maintained by Muhammad Tayyab ().