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Noisy vertical markets

Jha, Raghbendra; Nagarajan, Hari K

Description

In vertical markets volatility at one level of the market may transmit itself to another level. This paper examines the linkages that exist between spreads at different levels of the market hierarchy in Indian rice markets. It highlights the behavior of spreads in the presence of information asymmetry. This causes spreads to overshoot their equilibrium values. Second, we model possible differences between the reaction to an upward revision of the spread from that to a downward revision. We...[Show more]

dc.contributor.authorJha, Raghbendra
dc.contributor.authorNagarajan, Hari K
dc.date.accessioned2003-07-18
dc.date.accessioned2004-05-19T07:28:48Z
dc.date.accessioned2011-01-05T08:25:23Z
dc.date.available2004-05-19T07:28:48Z
dc.date.available2011-01-05T08:25:23Z
dc.date.created2002
dc.identifier.issn0012-9976
dc.identifier.urihttp://hdl.handle.net/1885/40304
dc.identifier.urihttp://digitalcollections.anu.edu.au/handle/1885/40304
dc.description.abstractIn vertical markets volatility at one level of the market may transmit itself to another level. This paper examines the linkages that exist between spreads at different levels of the market hierarchy in Indian rice markets. It highlights the behavior of spreads in the presence of information asymmetry. This causes spreads to overshoot their equilibrium values. Second, we model possible differences between the reaction to an upward revision of the spread from that to a downward revision. We also propose policy prescriptions such that the policy maker can target specific levels of the market verticality given an understanding of the process of transmission and the magnitude of noise trading.
dc.format.extent77398 bytes
dc.format.extent358 bytes
dc.format.mimetypeapplication/pdf
dc.format.mimetypeapplication/octet-stream
dc.language.isoen_AU
dc.publisherK. Raj for Sameeksha Trust
dc.sourceEconomic and Political Weekly
dc.subjectvertical markets
dc.subjectpartial adjustment
dc.subjectasymmetric price transmission
dc.titleNoisy vertical markets
dc.typeWorking/Technical Paper
local.description.refereedno
local.identifier.citationvolumeXXXVII
local.identifier.citationyear2002
local.identifier.eprintid1711
local.rights.ispublishedyes
local.identifier.absfor140303 - Economic Models and Forecasting
local.identifier.ariespublicationMigratedxPub3254
local.type.statusPublished Version
local.contributor.affiliationANU
local.contributor.affiliationASARC, RSPAS
local.citationWorking Paper no.2002/04
local.bibliographicCitation.issue51
local.bibliographicCitation.startpage5135
local.bibliographicCitation.lastpage41
dc.date.updated2015-12-11T08:00:14Z
CollectionsANU Research Publications

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