DISPARITY OF PRICES IN THE AGRICULTURAL SECTOR OF THE ECONOMY

Agriculture is the city-forming branch of the agro-industrial complex, the share of which in recent years in the gross domestic product annually amounts to about 5%. Despite the positive dynamics of the development of the last decade, quite a lot of unresolved problems have accumulated in the agricultural complex. One of them is the disparity of prices, which consists in a faster growth of price indices for industrial goods and services used in agricultural production in comparison with the growth of price indices for agricultural raw materials and products. This hinders the development of agricultural production in solving the problem of ensuring food security and import substitution, has an impact on the level of profitability and competitiveness of rural producers. The conducted research made it possible to establish price imbalances between the economic entities of the agro-industrial complex and the need to improve the pricing system based on taking into account the real contribution of all participants.

SARIMA Model for Forecasting Price Indices Fluctuations

In day-to-day life, the price level fluctuations in the Consumer Price Index (CPI) goods and service. So, the retail consumers are affecting by that price level changes, who are on the demand side of the economy. The main objective of this work is to forecast such selected factors of CPI in urban and rural areas of India, like: Food and Beverages, Pan, Tobacco and Intoxicants, Fuel and Light and Education and also compute the inflation rate for those four main variables in all India.

Markups for Consumers

A central motivating factor for studying price markups is their effect on consumer welfare. However, reported estimates of (firm-level) price markups in the literature often focus on industry or cross-country comparisons. These treat different industries equally rather than based on how relevant they are for consumers. We propose markup measures in which firm-level price markups are weighted according to consumption expenditures in the respective industries. Using a concordance table between consumption categories (otherwise used for the calculation of consumer price indices) and a firm’s industry classification, we report results for Germany for the years 2002 through 2016. We find that consumption-weighted price markups are higher and have increased faster than the conventionally reported revenue-weighted markups. We further show that consumption-weighted markups are highest for low-income households, highlighting the potential role of price markups as a contributing factor to changes in inequality in society.