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The price relationship between organic and non-organic vegetables in the U.S.: evidence from Nielsen scanner data

Author

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  • GwanSeon Kim
  • Jun Ho Seok
  • Tyler B. Mark
  • Michael R. Reed

Abstract

This study investigates price relationships between organic and conventional carrots, tomatoes, and lettuce in the U.S. utilizing Nielsen scanner data from 2006–2015. We employ a threshold vector error correction model (TVECM), threshold vector autoregressive model (TVAR), and threshold cointegration test to test whether market integration exists between organic and conventional vegetables as well as the existence of asymmetric price transmission. The results find positive long-run relationships between organic and conventional prices of carrots and tomatoes and show the existence of asymmetric price transmission in price pairs of lettuce and tomatoes. Our findings suggest that the price relationship between organic and conventional vegetables varies by characteristics, such as shelf life, volatility in the price premium, and substitutability.

Suggested Citation

  • 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.
  • Handle: RePEc:taf:applec:v:51:y:2019:i:10:p:1025-1039
    DOI: 10.1080/00036846.2018.1524570
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    Cited by:

    1. Youzhu Li & Jinsi Liu & Hongyu Yang & Jianxin Chen & Jason Xiong, 2021. "A Bibliometric Analysis of Literature on Vegetable Prices at Domestic and International Markets—A Knowledge Graph Approach," Agriculture, MDPI, vol. 11(10), pages 1-17, September.
    2. Govindasamy, Ramu & Gao, Qun & Heckman, Joseph & Vellangany,Isaac & VanVranken, Richard, 2020. "Characteristics of Consumers Who Are Willing to Buy Certified Organic Produce: An Econometric Analysis," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 8(3), July.
    3. Sharon Raszap Skorbiansky & Michael K Adjemian, 2021. "Not All Thin Markets Are Alike: The Case of Organic and Non‐genetically Engineered Corn and Soybeans," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(1), pages 117-133, February.

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