Abstract

CANCINO, Susan Elsa  and  CANCINO-ESCALANTE, Giovanni Orlando. Estimation of peach supply response in Colombia using a Vector Error Correction Model. Entramado [online]. 2021, vol.17, n.1, pp.250-260.  Epub May 05, 2021. ISSN 1900-3803.  https://doi.org/10.18041/1900-3803/entramado.1.7243.

An empirical study of peach supply response to own-price and yield in Colombia using time series data from 2000 to 2018 was undertaken. A quantitative, correlational and non-experimental research design was selected and the Johansen's co-integration as well as the vector error correction framework were employed. The Augmented Dickey-Fuller test showed that the time series were integrated of order one and the Johansen's co-integration confirmed the existence of a long-term relationship between the variables. Moreover; the short and long run coefficients for own-price and yield were statistically significant and presented the expected signs, however estimated own-price elasticity was below unit suggesting it is not an important factor in peach supply response. Furthermore, the vector error correction coefficient (-0.32) was negative and in line with theory which showed that in the long-run, the model converges towards equilibrium, however at a relatively slow pace. Therefore, it can be concluded that, overall, the proposed model contributes to the understanding of the dynamics in peach output supply

Keywords : Vector error correction model; Johansen's co-integration; peach output supply; long-term equilibrium.

        · abstract in Spanish | Portuguese     · text in English     · English ( pdf )