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Journal : AGRISE

PRICE VOLATILITY AND SPILLOVER OF BIG CAYENNE (Capsicum annuum L.) IN MALANG DISTRICTS Nurul Khabibah; Ratya Anindita; Wiwit Widyawati
Agricultural Socio-Economics Journal Vol 19, No 3 (2019): AUGUST
Publisher : Socio-Economics/Agribusiness Department

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.agrise.2019.019.3.9

Abstract

Production of big cayenne in Malang Districts has trend increase while consumption has trends decrease make excess supply. Unbalanced supply and demand causes price fluctuation between producers and consumers. Price fluctuations can pose risks and price uncertainties or price changes known as price volatility. The purpose of this research is to analyze price volatility that occurs at the level of producers and consumers of big cayenne in Malang Districts, and analyze the spillover volatility that occurs at the price of producers and consumers big cayenne in Malang Districts. The method used to analyze price volatility is ARCH/GARCH models and the method used to analyze the spillover volatility is EGARCH models. The results showed that the price volatility of big cayenne in Malang Regency at the producer and consumer level is low volatility and the results of spillover volatility showed that the price of big cayenne producers and consumers in Malang Districts occur spillover volatility.
EXPERIENCE SHOCKS OF STRATEGIC FOOD CONSUMERS IN INDONESIA DURING COVID-19 PANDEMIC Fitrotul Laili; Wiwit Widyawati; Dian Islami Prasetyaningrum
Agricultural Socio-Economics Journal Vol 22, No 1 (2022): JANUARY
Publisher : Socio-Economics/Agribusiness Department

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.agrise.2022.022.1.8

Abstract

COVID-19's negative externalities disrupted the supply of several commodities. Meanwhile, to combat the spread of COVID-19, various countries have implemented a lockdown policy, which impacts the economy's balance. Consumers' risks are increasing due to economic changes caused by the COVID-19 pandemic, which affects the higher level of volatility of various agricultural commodities in Indonesia, particularly strategic commodities. Thus, this research was designed to examine the experience shock of strategic food consumers during Covid-19 pandemic. The ARCH/GARCH model was used to describe the strategic food price movement pattern using a set of weekly consumer price data from March 2020 until August 2021. This study found price volatility of strategic food commodities is classified into three categories. For starters, the extreme volatility of commodities such as garlic and cayenne pepper indicates that future buyers will face more significant uncertainty and risk. Furthermore, these commodities will generate fluctuating price swings in the future, resulting in greater experience shock for consumers. Second, commodities with high price volatility, such as rice, chicken meat, eggs, shallots, and sugar, signal that these commodities will subject consumers to a huge shock due to their high price volatility. Third, minimal volatility, such as that found in meat, red chilli, and cooking oil, indicates that customers will face less uncertainty in the future.
EXPERIENCE SHOCKS OF STRATEGIC FOOD CONSUMERS IN INDONESIA DURING COVID-19 PANDEMIC Fitrotul Laili; Wiwit Widyawati; Dian Islami Prasetyaningrum
Agricultural Socio-Economics Journal Vol. 22 No. 1 (2022): JANUARY
Publisher : Socio-Economics/Agribusiness Department

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.agrise.2022.022.1.8

Abstract

COVID-19's negative externalities disrupted the supply of several commodities. Meanwhile, to combat the spread of COVID-19, various countries have implemented a lockdown policy, which impacts the economy's balance. Consumers' risks are increasing due to economic changes caused by the COVID-19 pandemic, which affects the higher level of volatility of various agricultural commodities in Indonesia, particularly strategic commodities. Thus, this research was designed to examine the experience shock of strategic food consumers during Covid-19 pandemic. The ARCH/GARCH model was used to describe the strategic food price movement pattern using a set of weekly consumer price data from March 2020 until August 2021. This study found price volatility of strategic food commodities is classified into three categories. For starters, the extreme volatility of commodities such as garlic and cayenne pepper indicates that future buyers will face more significant uncertainty and risk. Furthermore, these commodities will generate fluctuating price swings in the future, resulting in greater experience shock for consumers. Second, commodities with high price volatility, such as rice, chicken meat, eggs, shallots, and sugar, signal that these commodities will subject consumers to a huge shock due to their high price volatility. Third, minimal volatility, such as that found in meat, red chilli, and cooking oil, indicates that customers will face less uncertainty in the future.