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Asymetric Price Transmission in the Spanish Lamb Sector

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  • Ben Kaabia, Monia
  • Gil, Jose Maria

Abstract

This paper aims to investigate the non-linear adjustments of prices between farm and retail prices in the lamb sector in Spain. The methodology used is based on the multivariate approach to specify and estimate a three-regime Threshold Autoregressive Model. Results indicate that in the long-run price transmission is perfect and any supply or demand shocks are fully transmitted along the marketing chain. In the short-run, price adjustments between the farm and the retail levels are asymmetric and are representative of a demand-pull transmission mechanism. On the other hand, retailers benefit from any shock, whether positive or negative, that affects supply or demand conditions.

Suggested Citation

  • Ben Kaabia, Monia & Gil, Jose Maria, 2005. "Asymetric Price Transmission in the Spanish Lamb Sector," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24631, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae05:24631
    DOI: 10.22004/ag.econ.24631
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