Modeling asymmetric price transmission in the European food market

Rezitis, Anthony N. and Tsionas, Mike (2019) Modeling asymmetric price transmission in the European food market. Economic Modelling, 76. pp. 216-230. ISSN 0264-9993

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In this study, we employ a multivariate panel error correction model (PVECM) to investigate asymmetric price transmission among the farm, processor, and retail segments of the European food supply chain for the 2005–2016 period. The results indicate that, in both the long- and short-run, retail prices respond more strongly to processor price increases than decreases and the same occurs for processor prices due to farm price changes. Thus, the findings demonstrate the presence of positive asymmetric price transmission in the European food supply chain. Finally, the results of the present study indicate that the food price pass-through varies greatly across product category and across countries, and that the pass-through to producer prices is greater than that to consumer prices.

Item Type:
Journal Article
Journal or Publication Title:
Economic Modelling
Additional Information:
This is the author’s version of a work that was accepted for publication in Economic Modelling. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Economic Modelling, 76, 2019 DOI: 10.1016/j.econmon.2018.08.004
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Deposited On:
11 Jan 2019 13:35
Last Modified:
31 Aug 2022 00:08