Pass-Through Effects of Global Food Prices on Consumer Prices in Iran
Ebrahim Javdan 1
Jafar Haghighat 2
Esmaeil Pishbahar 3
Phillip Kostov 4
Rassul Mohammadrezaei 5
1 Department of Agricultural Economics, University of Tabriz, Iran (Corresponding Author: ebrahimjavdan@tabrizu.ac.ir).
2 Professor, Department of Economics, University of Tabriz, Iran (haghighat@tabrizu.ac.ir).
3 Department of Agricultural Economics, University of Tabriz, Iran (pishbahar@tabrizu.ac.ir).
4 University of Central Lancashire, Lancashire, UK (PKostov@uclan.ac.uk).
5 Department of Agricultural Economics, University of Tabriz, Iran (rmrezaei@tabrizu.ac.ir).
he objective of this study is using the Markov Switching Vector Autoregressive method and regime dependent impulse response functions to measure the pass-through of world food prices to consumer price index in Iran from 1990 to 2013. With respect to information criteria and the log-likelihood ratio statistic, MSIA(2)-VAR(1) model has a better fit to data than other models. The magnitude of the pass-through in first and second regimes is respectively 0.43 and 0.94 after two years. We show that the magnitude of the pass-through from world food prices to consumer price index resulting from recent world food price shocks has been higher than before.
Keywords: Domestic Prices
World Food Prices. JEL Classification: Q02
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Javdan, E., Haghighat, J., Pishbahar, E., Kostov, P., Mohammadrezaei, R. (2017). Pass-Through Effects of Global Food Prices on Consumer Prices in Iran. Iranian Economic Review, 21(1), 169-180. doi: 10.22059/ier.2017.60869
Ebrahim Javdan; Jafar Haghighat; Esmaeil Pishbahar; Phillip Kostov; Rassul Mohammadrezaei. "Pass-Through Effects of Global Food Prices on Consumer Prices in Iran". Iranian Economic Review, 21, 1, 2017, 169-180. doi: 10.22059/ier.2017.60869
Javdan, E., Haghighat, J., Pishbahar, E., Kostov, P., Mohammadrezaei, R. (2017). 'Pass-Through Effects of Global Food Prices on Consumer Prices in Iran', Iranian Economic Review, 21(1), pp. 169-180. doi: 10.22059/ier.2017.60869
Javdan, E., Haghighat, J., Pishbahar, E., Kostov, P., Mohammadrezaei, R. Pass-Through Effects of Global Food Prices on Consumer Prices in Iran. Iranian Economic Review, 2017; 21(1): 169-180. doi: 10.22059/ier.2017.60869