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Investigating the Price Transmission Mechanism of the Greek Fresh Tomato Market with a Markov Switching Vector Error Correction model

Author

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  • Rezitis, Anthony N.
  • Pachis, Dimitris N.

Abstract

The present study investigates the price transmission mechanism between producer and consumer prices in the Greek fresh tomato market, using monthly price data from January 1995 to May 2011. The estimation is carried out by applying a Markov Switching Vector Error Correction model. The results indicate that there are causality and leadership relationships between producer and consumer prices in the short and in the long run. Finally, a multinomial logit model is utilized in order to determine the factors that affect the switching of the price transmission mechanism.

Suggested Citation

  • Rezitis, Anthony N. & Pachis, Dimitris N., 2013. "Investigating the Price Transmission Mechanism of the Greek Fresh Tomato Market with a Markov Switching Vector Error Correction model," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 14(2), pages 1-17.
    • Handle: RePEc:ags:aergaa:253543
    DOI: 10.22004/ag.econ.253543
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    References listed on IDEAS

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    2. Akpan, S.B. & Udoka, S. J. & Inimfon, V. P., 2016. "Assessment of Rice Market Competiveness Using Horizontal Price Transmission: Empirical Evidence from Southern Region of Nigeria," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 8(2), pages 1-16, June.
    3. Rezitis, A.N. & Ahammad, S.M., 2015. "Investigating Agricultural Production Relations across Bangladesh, India and Pakistan Using Vector Error Correction and Markov-Switching Models," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 28(1).
    4. Troncoso Sepúlveda, Ricardo, 2019. "Transmisión de los precios del arroz en Colombia y el mundo," Revista Lecturas de Economía, Universidad de Antioquia, CIE, issue 91, pages 151-179, July.
    5. Ahmed, Osama, 2021. "Do future markets protect the spot markets in developing countries? The case of the Egyptian wheat market," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 20(5), pages 65-83.

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