Endogenous price fluctuations: Evidence from the chicken supply chain in Pakistan

Persistent agricultural price fluctuations in developing countries have revived interest the theory of endogenous instability. We examine underlying cause instability Pakistan's broiler and chick markets. To this end, we utilize findings from our fieldwork estimates unobserved component-models to formulate a theoretical model chicken supply chain Pakistan. Under standard assumptions, derive hypotheses that can be tested by using vector autoregressions weekly data on (farm-gate) prices Our empirical conform predictions model, evidence dynamics observed is robust alternative specifications estimation methods. use numerical simulations illustrate empirically grounded parameterizations emulate salient features The accumulation descriptive, empirical, analysis builds compelling case for nature chain.