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Is There Asymmetric Price Transmission in the U.S. Fluid Milk Market?

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  • Zeng, Shuwei
  • Gould, Brian

Abstract

This study is used to examine the characteristics of the retail price adjustment within the U.S. fluid whole milk market. We employ an error correction model (ECM) to test for asymmetry in the transmission of farm milk price changes to changes in the retail price. In this analysis we use monthly data of farm and retail whole milk prices encompassing the January 2001 to December 2011 period for 16 U.S. cities. Several cities were found to display asymmetric price transmission where retail prices tended to respond more quickly with farm price increases vs. decreases.

Suggested Citation

  • Zeng, Shuwei & Gould, Brian, 2016. "Is There Asymmetric Price Transmission in the U.S. Fluid Milk Market?," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 237346, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea16:237346
    DOI: 10.22004/ag.econ.237346
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    References listed on IDEAS

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    Cited by:

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    2. Federico Antonioli & Monia Ben Kaabia & Filippo Arfini & José M. Gil, 2019. "Price transmission dynamics for quality‐certified food products: A comparison between conventional and organic fluid milk in Italy," Agribusiness, John Wiley & Sons, Ltd., vol. 35(3), pages 374-393, July.

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    Keywords

    Agribusiness; Agricultural Finance; Demand and Price Analysis; Industrial Organization; Livestock Production/Industries;
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