IDEAS home Printed from https://ideas.repec.org/a/ags/jloagb/14688.html
   My bibliography  Save this article

Testing For Symmetry In Price Transmission: An Extension Of The Shiller Lag Structure With An Application To Fresh Tomatoes

Author

Listed:
  • Parrott, Scott D.
  • Eastwood, David B.
  • Brooker, John R.

Abstract

An empirical model of the price relationship between distribution stages is developed based on the Shiller lag. The assumption of constant returns to scale is relaxed to incorporate changes in the volume of shipments. An iterative GLS methodology is developed to estimate the model. Tests for symmetry, length of adjustment, and the amount of price transmission are outlined. An application using the change in the retail price of tomatoes based on shipping point price changes is described. Results suggest that the supermarket chain does not respond differently to price increases versus decreases at the shipping point level.

Suggested Citation

  • Parrott, Scott D. & Eastwood, David B. & Brooker, John R., 2001. "Testing For Symmetry In Price Transmission: An Extension Of The Shiller Lag Structure With An Application To Fresh Tomatoes," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 19(1), pages 1-15.
    • Handle: RePEc:ags:jloagb:14688
    DOI: 10.22004/ag.econ.14688
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/14688/files/19010035.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.14688?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Conway, Roger K. & Swamy, P. A. V. B. & Yanagida, John F. & Muehlen, Peter von zur, 1984. "The Impossibility of Causality Testing," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 36(3), pages 1-19.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Guojun He & Jeffrey T. LaFrance & Jeffrey M. Perloff & Richard Volpe, 2024. "How do Everyday-Low-Price Supermarkets Adjust Their Prices?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 64(1), pages 117-146, February.
    2. Amikuzuno, Joseph, 2011. "Border effects on spatial price transmission between fresh tomato markets in Ghana and Burkina-Faso: Any case for promoting trans-border trade in West Africa?," IAMO Forum 2011: Will the "BRICs Decade" Continue? – Prospects for Trade and Growth 9, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
    3. Giliola Frey & Matteo Manera, 2007. "Econometric Models Of Asymmetric Price Transmission," Journal of Economic Surveys, Wiley Blackwell, vol. 21(2), pages 349-415, April.
    4. Amikuzuno, Joseph & Donkor, Samuel, 2012. "Border Effects on Spatial Price Transmission between Fresh Tomato Markets in Ghana and Burkina-Faso: Any Case for Promoting Trans-border Trade in West Africa?," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126173, International Association of Agricultural Economists.
    5. Amikuzuno, Joseph, 2011. "Border Effects on Spatial Price Transmission between Fresh Tomato Markets in Ghana and Burkina-Faso: Any Case for Promoting Trans-border Trade in West Africa?," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108943, Agricultural Economics Society.
    6. Götz, L. & von Cramon-Taubadel, S., 2008. "Asymmetric Price Transmission in the Israeli Citrus Export Sector in the Aftermath of Liberalization," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 43, March.
    7. Amikuzuno, Joseph & Ihle, Rico, 2010. "Seasonal Asymmetric Price Transmission in Ghanaian Tomato Markets: Adapting Johansen’s Estimation Method," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96814, African Association of Agricultural Economists (AAAE).
    8. Götz, Linde & von Cramon-Taubadel, Stephan & Kachel, Yael, 2014. "Vertical Price Transmission in the International Fresh Fruit and Vegetable Supply Chain: Israeli Grapefruit Exports to the EU after Export Liberalisation," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 53(2), pages 1-22, May.
    9. Pede, Valerien O. & Valera, Harold Glenn A. & Alam, Mohammad Jahangir & McKenzie, Andrew M., 2013. "Nonlinearities in Regional Rice Prices in the Philippines: Evidence from a Smooth Transition Autoregressive (STAR) Approach," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150246, Agricultural and Applied Economics Association.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ana Claudia Sant’Anna & Ani L. Katchova, 2020. "Determinants of land value volatility in the U.S. Corn Belt," Applied Economics, Taylor & Francis Journals, vol. 52(37), pages 4058-4072, July.
    2. Riechers, Robin & Hinson, Roger A., 1988. "Price Relationships Between Regionally Important Fresh Vegetable Markets," Journal of Food Distribution Research, Food Distribution Research Society, vol. 19(2), pages 1-9, September.
    3. Sarker, Rakhal, 1990. "Testing Causality in Economics: A Review," Department of Agricultural Economics and Business 258629, University of Guelph.
    4. Michael Marlow & Neela Manage, 1987. "Expenditures and receipts: Testing for causality in state and local government finances," Public Choice, Springer, vol. 53(3), pages 243-255, January.
    5. Lundström, Susanna, 2003. "Effects of Economic Freedom on Growth and the Environment - Implications for Cross-Country Analysis," Working Papers in Economics 115, University of Gothenburg, Department of Economics.
    6. Blank, Steven C, 1987. "Evaluating International Price Relationships Using Causal Models," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 14(3), pages 305-323.
    7. Digal, Larry N. & Ahmadi-Esfahani, Fredoun Z., 2002. "Market power analysis in the retail food industry: a survey of methods," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(4), pages 1-26.
    8. Knapp, Tom & Mookerjee, Rajen, 1996. "Population growth and global CO2 emissions : A secular perspective," Energy Policy, Elsevier, vol. 24(1), pages 31-37, January.
    9. Michael Marlow & Neela Manage, 1988. "Expenditures and receipts in state and local government finances: Reply," Public Choice, Springer, vol. 59(3), pages 287-290, December.
    10. Abdur R. Chowdhury, 1991. "A Causal Analysis of Defense Spending and Economic Growth," Journal of Conflict Resolution, Peace Science Society (International), vol. 35(1), pages 80-97, March.
    11. Blank, Steven C. & Schmiesing, Brian H., 1985. "Combining Casuality Tests and Path Analysis to Model Agricultural Markets," Economics Staff Papers 232160, South Dakota State University, Department of Economics.
    12. Mariusz Maziarz, 2015. "A review of the Granger-causality fallacy," The Journal of Philosophical Economics, Bucharest Academy of Economic Studies, The Journal of Philosophical Economics, vol. 8(2), May.
    13. Parrott, Scott D. & Eastwood, David B., 1998. "Incorporating Seasonality, Product Volume, And Shiller Lags Into A Price Linkage Model," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20837, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    More about this item

    Keywords

    Demand and Price Analysis;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jloagb:14688. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aeaggea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.