2012•Journal of Hunan Agricultural University(Social Sciences)Requires access
Correlation between Chinese agricultural products prices and food prices:An empirical study based on SVAR model
Luo Guang-qiang
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Abstract
Using the impulse response function and variance decomposition based on SVAR model,this paper studies the relationship between agricultural products prices and food prices.The results show that agricultural products prices are not the main reason for the rise of food prices and the shock of agricultural prices only contributes 35.54% of the changes in food prices.Furthermore,the different agricultural products prices effect the food prices in various degree.In particular,grain prices and meat poultry prices have great influence on food prices.In addition,because of the rational expectations of market participants and supply and demand characteristics of the agricultural products,the shocks of food prices have a significant impact on the changes of agricultural products prices.