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The Impact of the Supply Regulation on the Price in Farming Olive Flounder
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 Title & Authors
The Impact of the Supply Regulation on the Price in Farming Olive Flounder
Kang, Seokkyu;
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This study is to analyse the relationship between the price and the supply in the farming Olive Flounder`s production area market. The data used in this study correspond to daily price and supply quantity covering time period from January 1, 2007 to June 30. 2013. The analysis methods of cointegration and vector error correction model are employed. The empirical results of this study are summarized as follows: First, the price and the supply follow random walks and they are integrated of order 1. Second, the price and the supply are cointegrated. Third, vector error correction model suggests that the relationship between the price change ration and the supply quantity change ratio has negative and feedback effect exists in the long-run, but the disequilibrium between the price and the supply is corrected by the supply quantity. Finally, vector error correction model suggests that the supply quantity leads the price in the short-run. This indicates that the decrease(increase) of the supply quantity results in the increase(decrease) of the price.
The Supply;Price;Farming Olive Flounder;Cointeration;Vector Error Correction Model;
 Cited by
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