Regression and Elasticity of the Average Delivery Price and Production of Honey in Romania

Abstract :

The paper aimed to analyze the average delivery price of honey and its relationship with honey production in Romania, an important producer and exporter of honey in the EU. In this purpose, the empirical data provided by the National Institute of Statistics for the period 2000-2015 were used   to calculate the statistical parameters, correlation, regression as well as the elasticity coefficients. The Pearson correlation coefficient was r=0.848, reflecting that honey price at beekeepers' gate is positively and strongly correlated with honey production. The determined price-production regression model is Y = 0.432624113 - 1,317.253546 X, and Fisher test proved its validity. In the two variants, V1 and V2, the price elasticity coefficients varied from a year to another, being higher when the year 2000 was considered term of reference. In case of V1, honey price was found more an elastic price than an inelastic one, while in case of V2, honey price at delivery was more inelastic than an elastic one. Price-production regression is more important to better identify the relationships between these economic indicators. The price volatility could affect beekeeping efficiency, honey production and offer, consumption and trade.