The Impact of the Supply Regulation on the Price in Farming Olive Flounder

- Journal title : Environmental and Resource Economics Review
- Volume 24, Issue 4, 2015, pp.709-725
- Publisher : Korean Resource Economics Association
- DOI : 10.15266/KEREA.2015.24.4.709

Title & Authors

The Impact of the Supply Regulation on the Price in Farming Olive Flounder

Kang, Seokkyu;

Kang, Seokkyu;

Abstract

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.

Keywords

The Supply;Price;Farming Olive Flounder;Cointeration;Vector Error Correction Model;

Language

Korean

References

1.

강석규, "한국주가지수시장의 가격발견에 관한 연구: KODEX200, KOSPI200과 KOSPI200 선물," 선물연구, 제17권, 제3호, 2009, pp. 67-97.

2.

강석규, "굴 산지시장의 위판량과 가격관계", 수산경영론집, 제32권 제1호, 2001, pp. 1-14.

3.

강태훈, "도매시장 경락가격과 반입량의 상호관계에 관한 분석-배추, 감자, 양파를 중심으로," 농업경제연구, 제48권, 제4호, 2007, pp. 45-67.

4.

Akaike, H., "Information Theory and an Extension of the Maximum Likelihood Principle," In B. Petrov & F. Csake (Eds.), Second International Symposium on Information Theory, Budapest: Akademiai Kiado, 1973.

5.

Bera, A., and C. Jarque, "Efficient Tests for Normality, Heteroskedasticity, and Serial Independence of Regression Residuals," Economic Letters, 6, 1980, pp. 225-259.

6.

Engle, R. B., and C. W. Granger., "Cointegration and Error Correction: Representation, Estimation, and Testing," Econometrica, 55, 1987, pp. 251-276.

7.

Garcia, P., R. M. Leuthold, and H. Zapata, "Lead-Lag Relationships between Trading Volume and Price Variability: New Evidence," Journal of Futures Markets, 6, 1986, pp. 1-10.

8.

Granger, C., and P. Newbold, "Spurious Regressions in Econometrics," Journal of Econometrics, 2, 1974, pp. 111-120.

9.

Johansen, S., Statistical Analysis of Cointegration Vectors, Journal of Economic Dynamics and Control, 12, 1988, pp. 231-254.

10.

Johansen, S., Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models, Econometrica, 59, 1991, 1551-1580.

11.

Karpoff, J. M., "The Relationship between Price Changes and Trading Volume: A Survey," Journal of Financial Quantitative Analysis, 22, 1987, pp. 109-126.

12.

어업생산통계(www.fips.go.kr)