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

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  • 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.

Suggested Citation

  • Teresa Serra & José M. Gil & Barry K. Goodwin, 2006. "Local polynomial fitting and spatial price relationships: price transmission in EU pork markets," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 33(3), pages 415-436, September.
    • Handle: RePEc:oup:erevae:v:33:y:2006:i:3:p:415-436
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