Price Transmission Mechanism in the Iranian Rice Market




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