The expected goal of this research is (1) to analyze the price transmission between the farm level and the consumer level in rice sector, by using the Asymmetric Price Transmission approach with the asymmetric error correction model (AECM), and (2) to explain the factors that affect the level of market integration and rice price transmission between the farm level and the consumers level, which associated with the condition of the structure and behavior of Indonesian rice middle man. Monthly series data of 2000 to 2011 at farm level and consumer level were used as sample data in analyzing vertical price transmission. Based on the model, the price transmission from the farm level to the consumer level is symmetric in the short term. Meanwhile in the long term, the price transmission is asymmetric. It means that the price transmission is caused by the long term factors, such as abuse of kekuatan pasar by the middle man and the government policy.
|Journal||Jurnal Kebijakan Ekonomi|
|Publication status||Published - 2013|