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An empirical investigation of the linkages between conventional and organic milk markets in Austria

Author

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  • Panos Fousekis

    (Department of Economics, Aristotle University, Thessaloniki, Greece)

Abstract

This work investigates the strength and the pattern of linkages among the three markets of qualitatively differentiated milk (i.e., conventional, organic without heymilk, and organic with heymilk) in Austria using the flexible TVP-VAR frequency connectedness approach and information on prices from 2018 to 2023. The main empirical findings are: (a) Taken together, the markets have maintained a moderate degree of connectedness to each other. (b) Price linkages have been frequency-dependent; much of the adjustments to incoming information have been completed within 3 months. (c) Connectedness has been asymmetric; the highest quality (organic with heymilk) has been a net transmitter of price shocks to organic without heymilk. (d) The intensity of connectedness has been time-varying; however, the internal structure of the market network (i.e., the net transmitters and receivers of price shocks) has remained fairly stable.

Suggested Citation

  • Panos Fousekis, 2024. "An empirical investigation of the linkages between conventional and organic milk markets in Austria," Economic Analysis Letters, Anser Press, vol. 3(3), pages 64-76, September.
    • Handle: RePEc:bba:j00004:v:3:y:2024:i:3:p:64-76:d:360
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    References listed on IDEAS

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    1. GwanSeon Kim & Jun Ho Seok & Tyler B. Mark & Michael R. Reed, 2019. "The price relationship between organic and non-organic vegetables in the U.S.: evidence from Nielsen scanner data," Applied Economics, Taylor & Francis Journals, vol. 51(10), pages 1025-1039, February.
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