Economics and Marketing
Alireza Karbasi; Hashem Mahmoudi; Behzad Fakari Sardehae; Mohammad Mehdi Farsi Aliabadi
Abstract
Saffron is one of the important agricultural product and North Khorasan, Razavi and South is considered as the major producers in Iran. In this study Central Market Hypothesis or price leadership has been examined. For this purpose Johanson Co-integration test for monthly price data since 2006 to 2011 ...
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Saffron is one of the important agricultural product and North Khorasan, Razavi and South is considered as the major producers in Iran. In this study Central Market Hypothesis or price leadership has been examined. For this purpose Johanson Co-integration test for monthly price data since 2006 to 2011 for these provinces has been used. Main results indicated that South Khorasan is a price leader between these provinces. In addition, saffron market is unit in South Khorasan and Khorasan Razavi and the law of one price is indefeasible. Moreover, North Khorasan has a separate market and in long run saffron market in this province is not an impressible market. The adoption of a policy on each of the three provinces, affects the other two the product market provinces.
Economics and Marketing
Hashem Mahmoudi; Samira Afrasiabi
Abstract
Asymmetric price transmission is instances of market imperfection which can affect consumers’ welfare. Because of this matter, analyzing price transmission in agricultural market is an important issue. Saffron is a strategic agricultural commodity in Iran, which mostly produces in Razavi, North ...
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Asymmetric price transmission is instances of market imperfection which can affect consumers’ welfare. Because of this matter, analyzing price transmission in agricultural market is an important issue. Saffron is a strategic agricultural commodity in Iran, which mostly produces in Razavi, North and South Khorasan provinces. In this study saffron’s price behavior in these provinces has been investigated. First Johanson Co-integration and Engel-Granger test have been used to investigate long-run relation between monthly saffron’s prices from 2006- 2011. Then, threshold Co-integration test has been used to examine whether price transmission is symmetric or asymmetric. Plus, Threshold Vector Error Correction model has been used to analysis short-run adjustment in saffron market in these provinces. Main results showed that saffron price transmission in Razavi, north and south khorasan is symmetric. The results show that the market price support policies can be helpful in the three provinces of saffron.
