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The Vertical Price Transmission in Pork Meat Production in the Czech Republic

Author

Listed:
  • Jitka Sirohi

    (Department of Statistics, Faculty of Economics and Management, Czech University of Life Sciences in Prague, 165 00 Prague, Czech Republic)

  • Zuzana Hloušková

    (Department of Statistics, Faculty of Economics and Management, Czech University of Life Sciences in Prague, 165 00 Prague, Czech Republic)

  • Klára Bartoňová

    (Department of Management, Faculty of Economics and Management, Czech University of Life Sciences in Prague, 165 00 Prague, Czech Republic)

  • Karel Malec

    (Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences in Prague, 165 00 Prague, Czech Republic)

  • Mansoor Maitah

    (Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences in Prague, 165 00 Prague, Czech Republic)

  • Robert Koželský

    (Department of Economics and Management, Faculty of Business and Law, Pan-European University, 110 00 Prague, Czech Republic)

Abstract

The paper aims at vertical price transmission of the agri-food market in the Czech Republic. It is focused on the analysis of price transmission in pork meat by investigating the short-run and long-run relationships within the product and the speed of establishing the equilibrium relationship. For this purpose, there is employed specially VECM (Vector Error Correction Model), impulse-response analysis, and decomposition of variance of VECM, which show the system’s reaction. The applied approach considers five alternatives in the Johansen approach. The results suggest that there is an existence of the equilibrium relationship in vertical markets and this relationship is simultaneous and demand-driven. The impulse-response analyses show the response of the processing price to one standard deviation shock to the agriculture price from approximately 15–20 periods reaching long-run equilibrium. The response of the agriculture price to one standard deviation shock to the processing price reaching long-run equilibrium is also from approximately 15–20 periods.

Suggested Citation

  • Jitka Sirohi & Zuzana Hloušková & Klára Bartoňová & Karel Malec & Mansoor Maitah & Robert Koželský, 2023. "The Vertical Price Transmission in Pork Meat Production in the Czech Republic," Agriculture, MDPI, vol. 13(6), pages 1-14, June.
    • Handle: RePEc:gam:jagris:v:13:y:2023:i:6:p:1274-:d:1175646
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    References listed on IDEAS

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