Intercommodity price transmission and food price policies: An analysis of Ethiopian cereal markets
Shahidur Rashid
No 1079, IFPRI discussion papers from International Food Policy Research Institute (IFPRI)
Abstract:
Cereal price variability in Ethiopia has worsened in recent years, and some of the earlier liberalizations are being reversed due to the unacceptable economic and political costs of increased price variability. The challenge now is to achieve price stability in a cost-effective way. This paper examines intercommodity price relationships to assess the relative importance of each of the three major cereals in generating price volatility. Based on the estimates from a dynamic econometric model, the paper concludes that maize is the most significant in exacerbating price variability with respect to the persistence of shocks to itself and the two other cereals. This implies that focusing on maize, instead of wheat, will not only help better stabilize prices but also reduce costs of stabilization. The results are also discussed in the context of ongoing policy discussions.
Keywords: Cointegration; common trend; food price stabilization (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-afr and nep-agr
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)
Downloads: (external link)
http://www.ifpri.org/sites/default/files/publications/ifpridp01079.pdf (application/pdf)
Related works:
Working Paper: Intercommodity price transmission and food price policies: An analysis of Ethiopian cereal markets (2011) 
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:fpr:ifprid:1079
Access Statistics for this paper
More papers in IFPRI discussion papers from International Food Policy Research Institute (IFPRI) Contact information at EDIRC.
Bibliographic data for series maintained by (ifpri-library@cgiar.org).