Research on the Correlation Between Grain Market Purchase Price and Minimum Purchase Price Based on HP Filter

Shuang TAO, Li-li LIANG, Jia-yuan TIAN, Xiu-Fen WANG


This paper aims to research the floor price of governmental purchasing of foodstuff and the market purchasing price in our country from the year 1990 to 2014. By using HP filter method, consistency analysis, and timing analysis, the paper discusses the relationship between the minimum purchase price and the market price. It turns out that the lowest purchase price and the market price exist periodic and they grow at the same increasing trend; as well, the minimum purchase price is in long-term equilibrium with the market price.


Grain price, HP filter, Co-integration analysis, Sunchronization analysis


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