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Modeling Pork Supply Response and Price Volatility: The Case of Greece

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  • Rezitis, Anthony N.
  • Stavropoulos, Konstantinos S.

Abstract

This paper examines the supply response of the Greek pork market. A GARCH process is used to estimate expected price and price volatility, while price and supply equations are estimated jointly. In addition to the standard GARCH model, several different symmetric, asymmetric, and nonlinear GARCH models are estimated. The empirical results indicate that among the estimated GARCH models, the quadratic NAGARCH model seems to better describe producers’ price volatility, which was found to be an important risk factor of the supply response function of the Greek pork market. Furthermore, the empirical findings show that feed price is an important cost factor of the supply response function and that high uncertainty restricts the expansion of the Greek pork sector. Finally, the model provides forecasts for quantity supplied, producers’ price, and price volatility.

Suggested Citation

  • Rezitis, Anthony N. & Stavropoulos, Konstantinos S., 2009. "Modeling Pork Supply Response and Price Volatility: The Case of Greece," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 41(1), pages 1-18, April.
    • Handle: RePEc:ags:joaaec:48764
    DOI: 10.22004/ag.econ.48764
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    References listed on IDEAS

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    1. Enrique Sentana, 1995. "Quadratic ARCH Models," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 62(4), pages 639-661.
    2. Unknown, 1986. "Letters," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 1(4), pages 1-9.
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    2. James Rude & Yves Surry, 2014. "Canadian Hog Supply Response: A Provincial Level Analysis," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(2), pages 149-169, June.
    3. He, Yongda & Lin, Boqiang, 2023. "Is market power the cause of asymmetric pricing in China's refined oil market?," Energy Economics, Elsevier, vol. 124(C).
    4. Tristan Le Cotty & Elodie Maître d'Hôtel & Moctar Ndiaye & Sophie S. Thoyer, 2021. "Input use and output price risks: the case of maize in Burkina Faso [Utilisation d'intrants et risques de prix : le cas du maïs au Burkina Faso]," CIRED Working Papers hal-03252026, HAL.
    5. Bicknell, Kathryn, 2011. "The Distributional Implications for Higher Farm Animal Welfare in New Zealand," 2011 Conference, August 25-26, 2011, Nelson, New Zealand 115418, New Zealand Agricultural and Resource Economics Society.
    6. Yoon, Jongyeol & Brown, Scott, 2017. "Examination of asymmetric supply response in the U.S. livestock industry," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252779, Southern Agricultural Economics Association.
    7. Marwa Ben Abdallah & Maria Fekete-Farkas & Zoltan Lakner, 2021. "Exploring the Link between Food Security and Food Price Dynamics: A Bibliometric Analysis," Agriculture, MDPI, vol. 11(3), pages 1-19, March.
    8. Shen Liu & Jing Wang & Chen Sun, 2022. "Asymmetric Price Transmission and Market Power: A Case of the Aquaculture Product Market in China," Sustainability, MDPI, vol. 14(22), pages 1-13, November.

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