Cooking Oil Price Volatility in the Consumer Market and Wholesalers Market in Indonesia
This study analyzes the price fluctuations of cooking oil in the Indonesian consumer and wholesale markets using the Autoregressive Conditional Heteroskedasticity (ARCH) model across January 2018 to January 2024 period that encompasses the period of study. This study covered the period measurin...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Society for Innovative Agriculture
2025-01-01
|
| Series: | Journal of Global Innovations in Agricultural Sciences |
| Online Access: | https://jgiass.com/pdf-reader.php?file=Cooking-Oil-Price-Volatility-in-the-Consumer-Market-and-Wholesalers-Market-in-Indonesia.pdf&path=issue_papers |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1832586359800332288 |
|---|---|
| author | Doppy Roy Nendissa Marthen R. Pellokila |
| author_facet | Doppy Roy Nendissa Marthen R. Pellokila |
| author_sort | Doppy Roy Nendissa |
| collection | DOAJ |
| description |
This study analyzes the price fluctuations of cooking oil in the Indonesian consumer and wholesale markets using the Autoregressive Conditional Heteroskedasticity (ARCH) model across January 2018 to January 2024 period that encompasses the period of study. This study covered the period measuring from January 2018 to January 2024. As per conclusions drawn upon the tests for stationarity, the series has become non-stationary after a second difference. An analysis of the results indicates substantial and even large amounts. Consumer price’s ARCH (α) and GARCH (β) coefficients are 0.569707, and the coefficients for wholesale prices are 1.29 and -0.13 respectively. This indicates that there is the presence of persistent volatility (α + β > 0) in the market. In view of these results, it is very clear that certain policy measures need to be put in place. Such measures should include the stabilization of the delivery mechanism through proper stock management and strategic price mechanisms to avoid wide fluctuations in price. Two other factors that may help in price variations stability are increasing market openness and promoting location diversification of supply sources. |
| format | Article |
| id | doaj-art-acc3e550198c4ff8920fda9fc785ce0a |
| institution | Kabale University |
| issn | 2788-4538 2788-4546 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | Society for Innovative Agriculture |
| record_format | Article |
| series | Journal of Global Innovations in Agricultural Sciences |
| spelling | doaj-art-acc3e550198c4ff8920fda9fc785ce0a2025-01-26T04:41:36ZengSociety for Innovative AgricultureJournal of Global Innovations in Agricultural Sciences2788-45382788-45462025-01-01617010.22194/JGIAS/25.1499 Cooking Oil Price Volatility in the Consumer Market and Wholesalers Market in IndonesiaDoppy Roy NendissaMarthen R. Pellokila This study analyzes the price fluctuations of cooking oil in the Indonesian consumer and wholesale markets using the Autoregressive Conditional Heteroskedasticity (ARCH) model across January 2018 to January 2024 period that encompasses the period of study. This study covered the period measuring from January 2018 to January 2024. As per conclusions drawn upon the tests for stationarity, the series has become non-stationary after a second difference. An analysis of the results indicates substantial and even large amounts. Consumer price’s ARCH (α) and GARCH (β) coefficients are 0.569707, and the coefficients for wholesale prices are 1.29 and -0.13 respectively. This indicates that there is the presence of persistent volatility (α + β > 0) in the market. In view of these results, it is very clear that certain policy measures need to be put in place. Such measures should include the stabilization of the delivery mechanism through proper stock management and strategic price mechanisms to avoid wide fluctuations in price. Two other factors that may help in price variations stability are increasing market openness and promoting location diversification of supply sources.https://jgiass.com/pdf-reader.php?file=Cooking-Oil-Price-Volatility-in-the-Consumer-Market-and-Wholesalers-Market-in-Indonesia.pdf&path=issue_papers |
| spellingShingle | Doppy Roy Nendissa Marthen R. Pellokila Cooking Oil Price Volatility in the Consumer Market and Wholesalers Market in Indonesia Journal of Global Innovations in Agricultural Sciences |
| title | Cooking Oil Price Volatility in the Consumer Market and Wholesalers Market in Indonesia |
| title_full | Cooking Oil Price Volatility in the Consumer Market and Wholesalers Market in Indonesia |
| title_fullStr | Cooking Oil Price Volatility in the Consumer Market and Wholesalers Market in Indonesia |
| title_full_unstemmed | Cooking Oil Price Volatility in the Consumer Market and Wholesalers Market in Indonesia |
| title_short | Cooking Oil Price Volatility in the Consumer Market and Wholesalers Market in Indonesia |
| title_sort | cooking oil price volatility in the consumer market and wholesalers market in indonesia |
| url | https://jgiass.com/pdf-reader.php?file=Cooking-Oil-Price-Volatility-in-the-Consumer-Market-and-Wholesalers-Market-in-Indonesia.pdf&path=issue_papers |
| work_keys_str_mv | AT doppyroynendissa cookingoilpricevolatilityintheconsumermarketandwholesalersmarketinindonesia AT marthenrpellokila cookingoilpricevolatilityintheconsumermarketandwholesalersmarketinindonesia |