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Price stabilization in the Taiwan hog and broiler industries: Evidence from a STAR approach

Author

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  • Hwang, Tsorng-Chyi
  • Chen, Meng-Gu
  • Chang, Chia-Lin

Abstract

The paper examines the effectiveness of the price stabilization mechanism for the broiler and poultry industry in Taiwan during the period 1999–2008. After presenting some background information on the domestic marketing system and price stabilization mechanisms for the broiler and pork industry in Taiwan, the paper discusses the smooth transition autoregressive (STAR) methodology. Monthly hog and broiler price data from 1999 to 2008 at farm, import and retail levels are analyzed using the nonlinear, non-asymmetric logistic STAR model in order to determine price transmission structure. A price threshold parameter is used so that price transmission levels can vary, thereby allowing an examination of the efficacy with which the hog and broiler price stabilization mechanisms take effect.

Suggested Citation

  • Hwang, Tsorng-Chyi & Chen, Meng-Gu & Chang, Chia-Lin, 2011. "Price stabilization in the Taiwan hog and broiler industries: Evidence from a STAR approach," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 82(2), pages 213-219.
    • Handle: RePEc:eee:matcom:v:82:y:2011:i:2:p:213-219
    DOI: 10.1016/j.matcom.2011.03.007
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    References listed on IDEAS

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    1. Dawe, David, 2001. "How far down the path to free trade? The importance of rice price stabilization in developing Asia," Food Policy, Elsevier, vol. 26(2), pages 163-175, April.
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    More about this item

    Keywords

    Broiler industry; Pork industry; Price stabilization; Domestic marketing system; Smooth transition autoregressive (STAR) methodology;
    All these keywords.

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics

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