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Local polynomial fitting and spatial price relationships: price transmission in EU pork markets

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Author Info
Teresa Serra
José M. Gil
Barry K. Goodwin
Abstract

We study price transmission processes within EU pork markets after the implementation of the EU single market in 1993. We compare results derived from non-parametric regressions with those obtained using alternative non-linear threshold models. Both techniques support the hypothesis that prices are transmitted across spatially separate EU pig markets and provide evidence for asymmetric price adjustments. They also suggest the existence of a range of price differentials where equilibrating price adjustments are less intense. Non-parametric techniques often suggest a higher degree of price transmission than that implied by threshold models. Copyright 2006, Oxford University Press.

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

Volume (Year): 33 (2006)
Issue (Month): 3 (September)
Pages: 415-436
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Handle: RePEc:oup:erevae:v:33:y:2006:i:3:p:415-436

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  1. Panos Fousekis, 2007. "Multiple Markets Within the EU? Empirical Evidence From Pork and Poultry Prices in 14 EU Member Countrties," Economics Bulletin, Economics Bulletin, vol. 3(65), pages 1-12. [Downloadable!]
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