A study of the efficiency and dynamics of rice prices.
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| Other Authors: | , , |
| Format: | Thesis Book |
| Language: | English |
| Published: |
1983.
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| Subjects: | |
| Online Access: | Link to ProQuest Copy |
| Abstract: | United States' rice prices have become more volatile in recent years. Farmers and others in the rice industry need more information on short term fluctuations of prices in order to plan marketing and risk aversion strategies. Policymakers in the U.S. government also need to know how efficiently the markets are working and the degree of competition among various regions. Time series models are used to investigate the efficiency and dynamics of rice prices. A market is considered efficient if its prices always fully reflect available information. In this analysis, the available information consists of past prices only. Four sets of prices are analyzed: (1) monthly farm, mill, and retail level prices, (2) weekly milled rice prices in Thailand, Louisiana, California, Arkansas, and Texas, (3) weekly prices for long grain rice, second heads, brewers rice,mill feed, and rice bran in Texas and corn in Kansas City, (4) weekly prices in The Hague for milled rice originating in the U.S., Thailand, and Argentina. The analysis of prices at different levels of the marketing channel indicates prices are determined at the mill level. Retail prices significantly lag both farm and mill prices and farm and mill prices move together. Arkansas and Louisiana markets are price leaders, with Louisiana having the stronger influence. All the U.S. prices move closely together. Thai prices lag behind, possibly because of the Thai government's involvement in price information.The prices of long grain rice, corn, and rice byproducts are only weakly related. Long grain rice, second heads, and brewers rice act as substitutes, as do corn, mill feed, and bran. Prices of Argentina and U.S. rice move closely together and react quickly to changes in Thai prices. Thai prices react slowly to movements in Argentina and U.S. prices. No markets are efficient in the sense of prices reacting instantaneously to new information. The degree of inefficiency of the various markets is low, indicating the rice markets are functioning reasonably well. |
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| Item Description: | Typescript (photocopy). Vita. "Major subject: Agricultural Economics." |
| Physical Description: | x, 155 leaves : illustrations ; 29 cm |
| Bibliography: | Includes bibliographical references (leaves 129-135). |