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Analyzing Market Price Transmission, Government Intervention and Weather Shocks for Rice Market in the Philippines

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  • Jolejole-Foreman, Maria Christina
  • Mallory, Mindy L.

Abstract

In the Philippines, where rice is considered the most important food crop, attempts to influence rice prices have been prevalent. The government, through National Food Authority (NFA) has sought to establish stocks and control imports to stabilize prices since its establishment in 1972 to support farm gate prices and reduce retail price of rice. But data shows divergence in retail prices and farm prices since mid 1960s. In this paper, we use vector autoregression (VAR) to analyze the movement of Philippine rice margins with government stocks and weather supply shocks to able to determine government effectiveness in actual times of market stress. Comparing VARs across regions, we are able to identify the regions in which price margins are significantly affected by government intervention measures.

Suggested Citation

  • Jolejole-Foreman, Maria Christina & Mallory, Mindy L., 2011. "Analyzing Market Price Transmission, Government Intervention and Weather Shocks for Rice Market in the Philippines," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103163, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea11:103163
    DOI: 10.22004/ag.econ.103163
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    References listed on IDEAS

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    Cited by:

    1. Mirzabaev, Alisher & Tsegai, Daniel W., 2012. "Effects of weather shocks on agricultural commodity prices in Central Asia," Discussion Papers 140769, University of Bonn, Center for Development Research (ZEF).
    2. Chinnadurai Kathiravan & Murugesan Selvam & Desti Kannaiah & Kasilingam Lingaraja & Vadivel Thanikachalam, 2019. "On the relationship between weather and Agricultural Commodity Index in India: a study with reference to Dhaanya of NCDEX," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(2), pages 667-683, March.
    3. Mirzabaev, Alisher & Tsegai, Daniel, 2015. "Effects of weather shocks on wheat prices in Central Asia," 2015 Conference, August 9-14, 2015, Milan, Italy 212466, International Association of Agricultural Economists.

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