Application of GARCH Model in Research on Price of Agricultural Products

Taking the price of grain in Guizhou Province as an example, by establishing GARCH model, I calculate VAR of logarithm return of grain price index, in order to conduct research on the variation law of price of the agricultural products. The results show that VAR of grain in Guizhou has variation. After the year 2010, VAR value is gradually increasing, and the price variation risk of grain market tends to increase progressively. Based on the characteristics of grain price variation, a series of corresponding proposals are put forward to stabilize the grain price as follows: strengthen the agricultural infrastructure construction, and promote the agricultural overall production capacity; reinforce the market supervision on the circulation field of agricultural products, and maintain market order; improve regulation system of agricultural products, and stabilize the price of agricultural products; strengthen mobility regulation, and prevent a flood of speculative cash.


Subject(s):
Issue Date:
2011-08
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/121275
Published in:
Asian Agricultural Research, Volume 03, Issue 08
Page range:
15-22
Total Pages:
4




 Record created 2017-04-01, last modified 2017-08-26

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