Factors Influencing Risk of Shallot by Using Arch Garch and Var
- DOI
- 10.2991/absr.k.210304.007How to use a DOI?
- Keywords
- Price, Risk, Shallot
- Abstract
Some of the horticultural commodities that have been assigned to be excellent commodities in the period 2015-2019 are various chili, shallot, and orange. Shallot are strategic commodities in Indonesia as well as commodities with high price fluctuations compared to other horticultural commodities. The aims of this study are to analyze factors influencing price risk of shallot in Indonesia and to a analyze strategy regarding to price risk of shallot in Indonesia. Processing and data analysis is conducted by using regression, ARCH GARCH and VAR model. Based on regression model, Price of shallot is influenced by supply. The results of the analysis concluded that the Best ARCH GARCH model for shallot price risk is ARCH (1) GARCH (1). It means that price risk of shallot is influence by volatility of previous day and variance of previous day. Efforts to overcome price volatility of shallot can be done through an integrated effort between farmers, government traders and other parties. Cooperation undertaken between the various parties should be accompanied by consistency and strong commitment such as continuous coaching and good supervision. This is done so that in an effort to achieve the expected results can be more efficient.
- Copyright
- © 2021, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Ratna Mega sari AU - Yeni Budiawati PY - 2021 DA - 2021/03/04 TI - Factors Influencing Risk of Shallot by Using Arch Garch and Var BT - Joint proceedings of the 2nd and the 3rd International Conference on Food Security Innovation (ICFSI 2018-2019) PB - Atlantis Press SP - 33 EP - 38 SN - 2468-5747 UR - https://doi.org/10.2991/absr.k.210304.007 DO - 10.2991/absr.k.210304.007 ID - sari2021 ER -