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Explaining Price Transmission Asymmetry In The Us Peanut Marketing Chain

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  • Revoredo-Giha, Cesar
  • Nadolnyak, Denis A.
  • Fletcher, Stanley M.

Abstract

n the paper, we study price transmission from wholesale peanut prices to retail peanut butter prices. Using monthly data since 1984, we show that, while an increase in peanut prices is almost immediately transferred to peanut butter prices, it takes several months for a price decrease to be reflected in the peanut butter prices. Besides, the long term price transmission effect also appears to be symmetric. The observed short and long-term asymmetry is explained as a result of profit maximizing inventory management and/or some degree of market power in peanut processing.

Suggested Citation

  • Revoredo-Giha, Cesar & Nadolnyak, Denis A. & Fletcher, Stanley M., 2004. "Explaining Price Transmission Asymmetry In The Us Peanut Marketing Chain," 2004 Annual meeting, August 1-4, Denver, CO 20363, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea04:20363
    DOI: 10.22004/ag.econ.20363
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    References listed on IDEAS

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    2. Abdulkadir Atalan, 2023. "Forecasting drinking milk price based on economic, social, and environmental factors using machine learning algorithms," Agribusiness, John Wiley & Sons, Ltd., vol. 39(1), pages 214-241, January.

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