A Spatiotemporal Analysis of Agricultural Prices: An Application to Colombian Data
Article first published online: 20 NOV 2012
© 2012 Wiley Periodicals, Inc.
Volume 29, Issue 4, pages 497–508, Autumn 2013
How to Cite
Iregui, A. M. and Otero, J. (2013), A Spatiotemporal Analysis of Agricultural Prices: An Application to Colombian Data. Agribusiness, 29: 497–508. doi: 10.1002/agr.21319
- Issue published online: 4 OCT 2013
- Article first published online: 20 NOV 2012
This study focusses on whether the geographical separation of markets constitutes a factor that helps explain the dynamics of agricultural prices. To do this, the authors employ a highly disaggregated dataset for Colombia that consists of weekly observations on wholesale prices for 18 agricultural products traded in markets scattered around the country. The sample period spans almost a decade. According to their results, which are based on generalized impulse response functions, distance (and thus transportation costs) is a factor that helps explain the speed at which prices adjust to shocks in other locations, thus confirming that price adjustments take longer for markets farther apart.