Calculation of Livestock Price Index and Contribution of Individual Components to the Index Variability
2017
Kim, E.J., Chungbuk National University, Cheongju, Republic of Korea | Yoon, B.S., Chungbuk National University, Cheongju, Republic of Korea
The primary objective of the study is to develop a livestock price index and determine how much the individual index components contribute to the variation of the livestock price index. The livestock price index calculated using a Laspeyres index formula is composed of beef, pork, chicken and egg at the wholesale level, and weighted by the production amount from 2007 to 2009(base period). Results show that the newly developed livestock price index(LPI) in this study has a cointegration relationship, or a long-run equilibrium relationship with the livestock index(LI) that is a subindex of the consumer price index(CPI). Of the components of the livestock price index, pork contributes the most to the fluctuations of the overall index, followed by beef. The average contribution of pork and egg is a negative value respectively, suggesting that they generally contribute to the decrease in livestock price index.
显示更多 [+] 显示较少 [-]