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Price transmission, BSE and structural breaks in the UK meat sector

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  • Ana I. Sanjuán
  • P. J. Dawson
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    Abstract

    This paper examines transmission between producer and retail prices for beef, lamb and pork in the UK and the impact of public concern over bovine spongiform encephalopathy (BSE) in early 1996. We used the cointegration procedure of Johansen et al. 2000), which admits structural breaks in cointegrating space. Results with monthly data for 1986--2000 show that a long-run relationship exists between each producer and retail price, and that a structural break occurs in the beef relationship at the height of the BSE crisis, which increases the margin by �1.12-kg. In contrast, there is no evidence of BSE-related breaks in the lamb or pork relationships. Copyright 2003, Oxford University Press.

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    Bibliographic Info

    Article provided by Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

    Volume (Year): 30 (2003)
    Issue (Month): 2 (June)
    Pages: 155-172

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    Handle: RePEc:oup:erevae:v:30:y:2003:i:2:p:155-172

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    Cited by:
    1. Sven Anders, 2008. "Imperfect Competition in German Food Retailing: Evidence from State Level Data," Atlantic Economic Journal, International Atlantic Economic Society, vol. 36(4), pages 441-454, December.
    2. Colin-Castillo, Sergio & Capps, Oral, Jr. & Hernandez, Manuel A., 2012. "Do Marketing Margins Change with Food Scares? Examining the Effects of Food Recalls and Disease Outbreaks in the U.S. Red Meat Industry," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124966, Agricultural and Applied Economics Association.
    3. Liang, Jing & Fabiosa, Jacinto F. & Jensen, Helen H. & Miller, Gay Y., 2010. "Potential HPAI Shocks and Welfare Implications of Market Power in the U.S. Broiler Industry," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61496, Agricultural and Applied Economics Association.
    4. Caceres-Hernandez, Jose Juan & Martin-Rodriguez, Gloria, 2006. "Heterogeneous Seasonal Patterns in Agricultural Data and Evolving Splines," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25261, International Association of Agricultural Economists.
    5. Hassouneh, Islam & Serra, Teresa & Gil, Jose Maria, 2009. "Price transmission in the Spanish bovine sector: the BSE effect," 2009 Conference, August 16-22, 2009, Beijing, China 50121, International Association of Agricultural Economists.
    6. Philip Kostov & John Lingard, 2005. "Seasonally specific model analysis of UK cereals prices," Econometrics 0507014, EconWPA.

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