Welfare impact of asymmetric price transmission on rice consumers in Bangladesh
This study investigates asymmetric price transmission (APT) in the rice market in Bangladesh using monthly price series at farm, wholesale, and retail levels from October 2005 to June 2017 in a nonlinear autoregressive distributed lag model (NARDL). The results indicate a significant asymmetric rela...
| Main Authors: | , , |
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| Format: | Journal Article |
| Language: | Inglés |
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Wiley
2022
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| Online Access: | https://hdl.handle.net/10568/164087 |
| _version_ | 1855530120557625344 |
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| author | Rahman, Mohammad Chhiddikur Pede, Valerien O. Balié, Jean |
| author_browse | Balié, Jean Pede, Valerien O. Rahman, Mohammad Chhiddikur |
| author_facet | Rahman, Mohammad Chhiddikur Pede, Valerien O. Balié, Jean |
| author_sort | Rahman, Mohammad Chhiddikur |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | This study investigates asymmetric price transmission (APT) in the rice market in Bangladesh using monthly price series at farm, wholesale, and retail levels from October 2005 to June 2017 in a nonlinear autoregressive distributed lag model (NARDL). The results indicate a significant asymmetric relationship across price at retail, wholesale, and farm levels in the long and short term. While wholesalers/millers benefit from the imperfect price transmission at the expense of farmers, retailers gain over wholesalers/millers. We find that the consumer surplus decreases from a price rise at the wholesale or farm level, but consumers do not enjoy a proportional increase in their surplus from a price reduction. The study reveals that the consumer welfare loss due to APT along the rice value chain of Bangladesh is equivalent to US$89.05 million per month. This estimated aggregate welfare loss requires both the attention of decision‐makers and corrective actions. |
| format | Journal Article |
| id | CGSpace164087 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2022 |
| publishDateRange | 2022 |
| publishDateSort | 2022 |
| publisher | Wiley |
| publisherStr | Wiley |
| record_format | dspace |
| spelling | CGSpace1640872025-02-19T14:25:55Z Welfare impact of asymmetric price transmission on rice consumers in Bangladesh Rahman, Mohammad Chhiddikur Pede, Valerien O. Balié, Jean development geography planning and development This study investigates asymmetric price transmission (APT) in the rice market in Bangladesh using monthly price series at farm, wholesale, and retail levels from October 2005 to June 2017 in a nonlinear autoregressive distributed lag model (NARDL). The results indicate a significant asymmetric relationship across price at retail, wholesale, and farm levels in the long and short term. While wholesalers/millers benefit from the imperfect price transmission at the expense of farmers, retailers gain over wholesalers/millers. We find that the consumer surplus decreases from a price rise at the wholesale or farm level, but consumers do not enjoy a proportional increase in their surplus from a price reduction. The study reveals that the consumer welfare loss due to APT along the rice value chain of Bangladesh is equivalent to US$89.05 million per month. This estimated aggregate welfare loss requires both the attention of decision‐makers and corrective actions. 2022-08 2024-12-19T12:53:27Z 2024-12-19T12:53:27Z Journal Article https://hdl.handle.net/10568/164087 en Wiley Rahman, Mohammad Chhiddikur; Pede, Valerien O. and Balié, Jean. 2022. Welfare impact of asymmetric price transmission on rice consumers in Bangladesh. Review Development Economics, Volume 26 no. 3 p. 1600-1617 |
| spellingShingle | development geography planning and development Rahman, Mohammad Chhiddikur Pede, Valerien O. Balié, Jean Welfare impact of asymmetric price transmission on rice consumers in Bangladesh |
| title | Welfare impact of asymmetric price transmission on rice consumers in Bangladesh |
| title_full | Welfare impact of asymmetric price transmission on rice consumers in Bangladesh |
| title_fullStr | Welfare impact of asymmetric price transmission on rice consumers in Bangladesh |
| title_full_unstemmed | Welfare impact of asymmetric price transmission on rice consumers in Bangladesh |
| title_short | Welfare impact of asymmetric price transmission on rice consumers in Bangladesh |
| title_sort | welfare impact of asymmetric price transmission on rice consumers in bangladesh |
| topic | development geography planning and development |
| url | https://hdl.handle.net/10568/164087 |
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