A Study on the Asymmetric Transmission of Rice Price in Taiwan

• Main Author: 馬偉倫
• Other Authors: 李元和
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/89461774592242858911

碩士 === 佛光大學 === 經濟學系 === 101 === Due to the indication of the trend on the increase in the international food price, it will impact the price in domestic rice market. The relationship between paddy and milled rice is similar to the relation of material to its product. When international food price increases, it will directly affect the price of milled rice. Based on the price data published by the Council of Agriculture, it always shows an increase in the price of milled rice, but rice farmers did not benefit from it at all. This could be caused by price asymmetric transmission between paddy and milled rice. Thus, this study attempts to use asymmetric error correction model to estimate the positive and negative responses on the paddy and milled price. The study aims to test the adjustment on retail price of milled rice to paddy price and to find out whether there is an asymmetric response. The result of this study is described as follows: 1. It showed a long term price equilibrium relationship between milled and paddy rice. 2. There is indeed a short term lag distribution price effect on the price of paddy to retail milled rice; For example, when the price of patty rice declines, the speed of its response to the retail price of milled rice is actually slower. While the price of patty rice is rising, the adjustment to the retail price of milled price is much faster. This showed an asymmetric impact on the price of milled rice to paddy. 3. For the asymmetric transmission of the price, the study is attempted to test whether there is an effect that a price asymmetric transmission has on the increase and the decrease for the retail price of milled rice to paddy, respectively.