1Department of Agricultural Economics, Institute of Agricultural Sciences, Banaras Hindu University, Varanasi221005Uttar Pradesh, India
Online published on 22 February, 2021.
The study analyses the spatial linkages of Agra, Hooghly, Firozpur, Pune, and Delhi potato markets. The Granger causality technique is used to identify the causal relationship between the price series in the potato markets, and the Delhi market is found to be the price leader. The shocks arising in the Delhi market are transmitted to all the other markets. To identify the price triggers in the major price-influencing markets, the variance decomposition technique is applied, which reveals that the forecast error variance in Delhi is explained by the variable itself both in the short and long run.
Cointegration, Granger causality, Impulse response, Instability, Variance decomposition
