Violence and the Market for Food: Evidence from Kenya

44 Pages Posted: 9 Jun 2013

See all articles by Luis A. Gil-Alana

Luis A. Gil-Alana

University of Navarra - Department of Economics

Prakarsh Singh

Amherst College - Department of Economics

Date Written: June 7, 2013

Abstract

We study the impact of post-election violence in Kenya on the food (wheat and maize) market in Mombasa and find empirical evidence that for this particular market, there is no impact on prices following violence. Using a data set of a flour producing firm, we identify the degree of persistence in prices and quantities by techniques based on the concept of long memory or long range dependence. Prices are found to be highly persistent in both wheat and maize flour, with orders of integration which are around 1 or even above 1. On the contrary, quantities, though also persistent, appear to be fractionally integrated, with orders of integration in the interval (0, 0.5) pointing towards stationarity, long memory and mean reverting behavior. Violence is associated with an insignificant increase in prices of both products and a significant decrease in quantities.

Keywords: food prices, persistence, violence, Kenya

JEL Classification: Q18, C22, D21

Suggested Citation

Gil-Alana, Luis A. and Singh, Prakarsh, Violence and the Market for Food: Evidence from Kenya (June 7, 2013). Available at SSRN: https://ssrn.com/abstract=2276250 or http://dx.doi.org/10.2139/ssrn.2276250

Luis A. Gil-Alana

University of Navarra - Department of Economics ( email )

Campus de Arrosadia
Pamplona, 31006
Spain

Prakarsh Singh (Contact Author)

Amherst College - Department of Economics ( email )

P.O. Box 5000
Amherst, MA 01002-5000
United States
413-542-2271 (Phone)

Register to save articles to
your library

Register

Paper statistics

Downloads
34
Abstract Views
327
PlumX Metrics