Author

  • Henry de-Graft Acquah

    • University of Cape Coast, Ghana
    • Ghana

Abstract

This study investigated co integration and asymmetric adjustments in the end equilibrium between Ghanaian retail and wholesale maize markets using the Enders and Siklos technique. Two competing models, namely Consistent Threshold Autoregressive (C-TAR) and Consistent Momentum Threshold Autoregressive (C-MTAR) models were estimated. Following the application of a standard model selection technique, C- MTAR model is selected as most appropriate. The results of the C-MTAR model confirm that the retail and wholesale prices of maize in Ghana are co integrated with threshold adjustment. Furthermore, it suggests that the process is asymmetric when the retail and wholesale prices of Ghanaian maize adjust to achieve the longterm equilibrium. Additionally, the adjustment is relatively faster when the price differential is increasing than when it is decreasing.

Keywords

References

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How to Cite

de-Graft Acquah, H. (2012). Threshold Effects and Asymmetric Price Adjustments within the Ghanaian Maize Market. Journal of Economics and Behavioral Studies, 4(9), 497-504. https://doi.org/10.22610/jebs.v4i9.351

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Copyright (c) 2012 Henry de-Graft Acquah (Author)

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Section

Research Paper

Published in

Vol. 4 No. 9 (2012) Sustainability, Governance & Price Dynamics View issue contents

Published

2012-09-15

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