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Statistical Analysis Of Price Transmission In The European Union

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  • Theodosios B. Palaskas

Abstract

The three‐step estimator of the co‐integrated system approach is used to examine the dynamic transmission of agricultural producer prices through the food marketing system in seven countries of the EU. The results suggest that even if producer and consumer prices drift apart in the short‐run, for example when producer price policy changes, market forces return them to their long‐run equilibrium. Tests do not reject the hypothesis of long‐run ‘perfect’ price transmission for two, pigmeat‐pigs and butter‐milk, out of five pairs of prices, in six of the seven member countries of the EU considered here, the UK being the exception. The tests do, however, reject the hypothesis of short‐run ‘perfect’ price transmission, even in its less restrictive form, across all pairs of prices in all countries.

Suggested Citation

  • Theodosios B. Palaskas, 1995. "Statistical Analysis Of Price Transmission In The European Union," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(1), pages 61-69, January.
    • Handle: RePEc:bla:jageco:v:46:y:1995:i:1:p:61-69
    DOI: 10.1111/j.1477-9552.1995.tb00752.x
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    Cited by:

    1. Morisset, Jacques, 1997. "Unfair trade? Empirical evidence in world commodity markets over te past 25 years," Policy Research Working Paper Series 1815, The World Bank.
    2. Nicholas Apergis & Anthony Rezitis, 2003. "Mean spillover effects in agricultural prices: The case of Greece," Agribusiness, John Wiley & Sons, Ltd., vol. 19(4), pages 425-437.
    3. Griffith, Garry R., 2000. "Competition in the food marketing chain," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(3), pages 1-35.
    4. Rosa, Franco & Vasciaveo, Michaela, 2013. "Imperfect Competition in the Italian Dairy Chain: Consequences for the Price Transmission and Welfare Distribution," 2013 International European Forum, February 18-22, 2013, Innsbruck-Igls, Austria 164747, International European Forum on System Dynamics and Innovation in Food Networks.
    5. Nicholas Apergis & Anthony Rezitis, 2003. "Mean spillover effects in agricultural prices: Evidence from changes in policy regimes," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 9(1), pages 69-78, February.
    6. Tóth, József & Popovics, Péter András, 2006. "Az ártranszmisszió és az árak aszimmetrikus alakulása Magyarország tejvertikumában [Price transmission and asymmetric price development in the vertical structure]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 349-364.
    7. Griffith, G.R., 2000. "Competition in the Food Marketing Chain," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 171911, Australian Agricultural and Resource Economics Society.
    8. Rosa, Franco & Weaver, Robert D. & Vasciaveo, Michela, 2015. "Structural Changes and Dairy Chain Efficiency in Italy," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 6(3), pages 1-21, July.
    9. Aguero, Jorge M., 2004. "Asymmetric Price Adjustments And Behavior Under Risk: Evidence From Peruvian Agricultural Markets," 2004 Annual meeting, August 1-4, Denver, CO 20394, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Livanis, Grigorios T. & Moss, Charles B., 2005. "Price Transmission and Food Scares in the U.S. Beef Sector," 2005 Annual meeting, July 24-27, Providence, RI 19485, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Adusei Jumah, 2004. "The long run, market power and retail pricing," Empirical Economics, Springer, vol. 29(3), pages 605-620, September.
    12. Varga, Tibor, 2007. "Vertical price transmission between market operators in Hungarian agricultural product chains," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 106, pages 1-30, July.
    13. Teresa Serra & Barry Goodwin, 2003. "Price transmission and asymmetric adjustment in the Spanish dairy sector," Applied Economics, Taylor & Francis Journals, vol. 35(18), pages 1889-1899.
    14. El Benni, Nadja & Finger, Robert & Hediger, Werner, 2014. "Transmission of beef and veal prices in different marketing channels," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182696, European Association of Agricultural Economists.
    15. Tim Lloyd, 2017. "Forty Years of Price Transmission Research in the Food Industry: Insights, Challenges and Prospects," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 3-21, February.
    16. T. B. Palaskas & Barbara Harriss-White & Trevor Crowe, 1997. "POLICY ARENA The evolution of local market commodity price behaviour in South India, 1972-92," Journal of International Development, John Wiley & Sons, Ltd., vol. 9(1), pages 101-115.
    17. Ioanna Reziti & Yannis Panagopoulos, 2008. "Asymmetric price transmission in the greek agri-food sector: some tests," Agribusiness, John Wiley & Sons, Ltd., vol. 24(1), pages 16-30.

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