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Semiparametric Evidence on the Nature of Price Transmission in Tanzanian Maize Markets

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  • Ihle, Rico
  • von Cramon-Taubadel, Stephan

Abstract

Maize is a major staple food in Sub-Saharan Africa. Monthly maize prices in Tanzania are analyzed since the country is an important maize producer and exporter in East Africa. We analyze price transmission between the five most important urban regions of Tanzania between 2000 and 2008 which correspond to major maize production or consumption areas. We propose a novel method for the analysis. The semiparametric vector error-correction model allows the partial impact of the past deviations from price equilibria on current price changes to be potentially nonlinear. The nonparametric estimates of these partial influences suggest that they can be adequately modeled by linear functions.

Suggested Citation

  • Ihle, Rico & von Cramon-Taubadel, Stephan, 2010. "Semiparametric Evidence on the Nature of Price Transmission in Tanzanian Maize Markets," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61606, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea10:61606
    DOI: 10.22004/ag.econ.61606
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    References listed on IDEAS

    as
    1. World Bank, 2008. "Regional Trade in Food Staples : Prospects for Stimulating Agricultural Growth and Moderation Food Security Crises in Eastern and Southern Africa," World Bank Publications - Reports 7829, The World Bank Group.
    2. repec:cup:cbooks:9780521839198 is not listed on IDEAS
    3. repec:cup:cbooks:9780521547871 is not listed on IDEAS
    4. World Bank, 2009. "Eastern Africa - A study of the Regional Maize Market and Marketing Costs," World Bank Publications - Reports 3155, The World Bank Group.
    Full references (including those not matched with items on IDEAS)

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    Crop Production/Industries; Marketing;

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