Price Transmission Mechanism in the Iranian Rice Market

Abstract

In this article, we estimate the vertical price transmission through the Iranian rice marketing chain by using<br />monthly data from March 2000 to February, 2009 and error correction model (ECM).The causality test<br />results indicate that changes in the producer price clearly led changes in wholesale and retail prices. In<br />Producer-Retail and Wholesale-Retail models, price transmission is asymmetric but in Producer-Wholesale<br />model the estimated model supports symmetric price transmission for rice in Islamic Republic of Iran.