Asymmetric transmission between factory and wholesale prices in fiberboard market in Korea
AbstractThis paper extends the estimation of price relationships in wood processing and empirical assessment of asymmetric price transmission by incorporating time lags in both explanatory and dependent variables. Each of the models developed and estimated in this article reveals the existence of asymmetric price transmission between factory and wholesale prices of fiberboard in Korea. Estimation results indicate that wholesalers earn additional profits by exploiting price fluctuations in the markets. The empirical findings in this study suggest the potential for lower wholesale prices of fiberboard with more competition in wholesale marketing.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Forest Economics.
Volume (Year): 19 (2013)
Issue (Month): 1 ()
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Find related papers by JEL classification:
- D49 - Microeconomics - - Market Structure and Pricing - - - Other
- L73 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Forest Products
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