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Assessing The Price Risk On The Romanian Agricultural Market: Analyses And Implications

Author

Listed:
  • Larisa Nicoleta POP

    (Faculty of Economics and Business Administration, Babes-Bolyai University Cluj-Napoca, Romania)

  • Flavius ROVINARU

    (Faculty of Economics and Business Administration, Babes-Bolyai University Cluj-Napoca, Romania)

  • Mihaela ROVINARU

    (Faculty of Economics and Business Administration, Babes-Bolyai University Cluj-Napoca, Romania)

Abstract

In any sector of activity, the uncertainty of price evolution poses challenges to producers, consumers, traders and investors, from private to national level. Moreover, the strategic importance of agricultural sector makes the issue of price volatility in this field an even more important matter both for private and governmental persons. Lately, the global economy struggled with profound turbulences and events that augmented the volatility context on the commodity markets in general and implicitly on those for agricultural ones. The substantial increase of volatility led to major debates regarding what has driven these developments and what new implications emerge from the price risk perspective. Romania, due to its sensitivity to external shocks, experienced in a severe manner the international commodity turmoil but it also has been aff ected by other factors that augmented the internal volatility and risk context. This paper intends to model and analyze the volatility of prices occurred in the recent years on the Romanian market for some agricultural crops. After calculating the econometric models and comparing the estimated conditional variance, the paper will aim at drawing some implications and recommendations from the perspective of price risk exposure.

Suggested Citation

  • Larisa Nicoleta POP & Flavius ROVINARU & Mihaela ROVINARU, 2013. "Assessing The Price Risk On The Romanian Agricultural Market: Analyses And Implications," Interdisciplinary Management Research, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 9, pages 469-479.
  • Handle: RePEc:osi:journl:v:9:y:2013:p:469-479
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    price volatility; price risk; agricultural commodity markets; Romanian market; conditional variance.;
    All these keywords.

    JEL classification:

    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications
    • Q02 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Commodity Market

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