ABSTRACT
ABSTRACT: This paper investigated price variation of five kinds of vegetables (rape, cucumber, tomato, green bean, and potatoes) in a wholesale vegetable market in Beijing. We assessed and evaluated the risk of the vegetable market by using the value at risk method. Results showed that the vegetable market, compared with other farm product markets, is one where risks occur more frequently and where the level of risk is higher. Meanwhile, normal distribution is not optimal for vegetable market risks. The degree of market risk differs for distinct varieties of vegetables. Leafy vegetables have a relatively high degree of market risk. Increases and decreases in vegetable market price risks are equally volatile, and the frequencies of the two risks are alike. Therefore, an decrease in vegetable prices should have the same importance as an increase in prices.
