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Detecting asymmetric price transmission with consistent threshold along the fish supply chain

Author

Listed:
  • Michel Simioni

    (GREMAQ - Groupe de recherche en économie mathématique et quantitative - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique)

  • Frédéric Gonzales

    (OCDE - Organisation de Coopération et de Développement Economiques = Organisation for Economic Co-operation and Development)

  • Patrice Guillotreau

    (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes)

  • Laurent Le Grel

    (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes)

Abstract

The present study deals with asymmetric price transmission (APT) along the fish value chain by using a consistent threshold autoregressive (consistent TAR and momentum-threshold autoregressive [M-TAR]) model. A nonzero threshold captures strategic behaviors and adjustment costs that are not observable with small price changes around a zero threshold. Fish farming, because of greater control over supply, is expected to produce less asymmetry than wild harvesting. Asymmetry is notwithstanding found for both wild cod and farmed salmon marketed in France, but only with consistent thresholds and operating in opposite ways. The results are discussed with regard to the trade restrictions imposed by the Common Fisheries Policy.

Suggested Citation

  • Michel Simioni & Frédéric Gonzales & Patrice Guillotreau & Laurent Le Grel, 2013. "Detecting asymmetric price transmission with consistent threshold along the fish supply chain," Post-Print hal-02643737, HAL.
    • Handle: RePEc:hal:journl:hal-02643737
    DOI: 10.1111/j.1744-7976.2012.01257.x
    Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-02643737
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