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The Impact Of Intermediate Input Price Changes On Food Prices: An Analysis Of "From-The-Ground-Up" Effects

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  • Lee, Chinkook
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    Abstract

    The impact of intermediate input price increases on food prices is analyzed assuming the producers can pass through increased production costs to final consumers. Five scenarios of input price increases are empirically examined. Findings indicate that the meat processing sector has a strong dependence on intermediate inputs (livestock), and an increase in livestock prices would have a greater impact on processed meat prices than would any other intermediate input price increases. Price increases in the service sector would result in overall price increases in food prices comparable to increases in intermediate agricultural commodities. Further, price increases in nondurable goods have more influence on food price increases than durable goods.

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    File URL: http://purl.umn.edu/14651
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    Bibliographic Info

    Article provided by Agricultural Economics Association of Georgia in its journal Journal of Agribusiness.

    Volume (Year): 20 (2002)
    Issue (Month): 1 ()
    Pages:

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    Handle: RePEc:ags:jloagb:14651

    Contact details of provider:
    Postal: 301 Conner Hall, University of Georgia, Athens, GA 30602-7509
    Web page: http://www.agecon.uga.edu/~jab/
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    Related research

    Keywords: food price; input-output analysis; intermediate input; pass-through effects; Demand and Price Analysis;

    References

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    1. Annette L. Clauson, 1997. "Forecasting Retail Food Prices Under Current Conditions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(5), pages 1669-1672.
    2. Daniel Aaronson, 2001. "Price Pass-Through And The Minimum Wage," The Review of Economics and Statistics, MIT Press, vol. 83(1), pages 158-169, February.
    3. Robert E. Young & Lori Wilcox & Brian Willott & Gary Adams & D. Scott Brown, 1997. "Consumer Food Prices from the Ground Up," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(5), pages 1673-1676.
    4. Gron, Anne & Swenson, Deborah L, 1996. "Incomplete Exchange-Rate Pass-Through and Imperfect Competition: The Effect of Local Production," American Economic Review, American Economic Association, vol. 86(2), pages 71-76, May.
    5. Lee, Chinkook & Schluter, Gerald E. & O'Roark, Brian, 2000. "Minimum Wage And Food Prices: An Analysis Of Price Pass-Through Effects," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 3(01).
    6. John M. Urbanchuk, 1997. "Commodity Markets, Farm-Retail Spreads, and Macroeconomic Condition Assumptions in Food Price Forecasting," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(5), pages 1677-1680.
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    Cited by:
    1. Mongelli, Ignazio & Löschel, Andreas & Neuwahl, Frederik & Delgado, Luis, 2008. "Employment Impacts of EU Biofuels Policy: Combining Bottom-up Technology Information and Sectoral Market Simulations in an Input-output Framework," ZEW Discussion Papers 08-049, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

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