Inflation and relative price volatility in Russian food markets

Jens Peter Loy, Robert D. Weaver

Research output: Contribution to journalArticle

8 Citations (Scopus)

Abstract

Real costs result when inflation changes relative prices between products or regions. When such changes are unanticipated, resource misallocation and welfare losses are induced. Time series analysis of retail food prices in Russian markets provides estimates of anticipated and unanticipated inflation, as well as of inflation uncertainty derived from a GARCH-M model. Results indicate that distortions in relative prices were induced by the anticipated inflation rate, rather than by unanticipated inflation or a measure of inflation uncertainty. No support was found for the Lucas hypothesis that a positive relationship exists between the relative price structure and the unanticipated rate of inflation.

Original languageEnglish (US)
Pages (from-to)373-394
Number of pages22
JournalEuropean Review of Agricultural Economics
Volume25
Issue number3
DOIs
StatePublished - Jan 1 1998

Fingerprint

Volatilization
inflation
Economic Inflation
markets
Food
Uncertainty
uncertainty
Food Analysis
food prices
Food markets
Relative prices
Price volatility
Inflation
time series analysis
Costs and Cost Analysis
Inflation uncertainty

All Science Journal Classification (ASJC) codes

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics and Econometrics

Cite this

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Inflation and relative price volatility in Russian food markets. / Loy, Jens Peter; Weaver, Robert D.

In: European Review of Agricultural Economics, Vol. 25, No. 3, 01.01.1998, p. 373-394.

Research output: Contribution to journalArticle

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