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Combining market structure and econometric methods for pricetransmission analysis

Author

Listed:
  • Alejandro Acosta

    (Food and Agriculture Organization of the United Nations)

  • Rico Ihle

    (Wageningen University)

  • Stephan Cramon-Taubadel

    (University of Göttingen)

Abstract

Much attention has been devoted in the literature to the analysis of price transmission along food supply chains. Price transmission analysis has traditionally focused on applying econometric methods to assess price dynamics and interrelationships. However, the exclusive application of econometric methods without considering the market’s institutional context has limited potential to support evidence-based policy-making. In recent years, studies have thus attempted to combine the use of quantitative and qualitative methods to better understand the level of performance of food value chains. This study contributes to broadening these empirical toolkits by suggesting a structured analytical framework that benefits from the simultaneous application of econometric and market-structure methods in price transmission analysis. To illustrate the application of the framework, we analyzed the milk market of Panama.

Suggested Citation

  • Alejandro Acosta & Rico Ihle & Stephan Cramon-Taubadel, 2019. "Combining market structure and econometric methods for pricetransmission analysis," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 11(4), pages 941-951, August.
    • Handle: RePEc:spr:ssefpa:v:11:y:2019:i:4:d:10.1007_s12571-019-00951-w
    DOI: 10.1007/s12571-019-00951-w
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    Cited by:

    1. Alejandro Acosta & Carlos Barrantes & Rico Ihle, 2020. "Animal disease outbreaks and food market price dynamics: Evidence from regime‐dependent modelling and connected scatterplots," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), pages 960-976, July.
    2. Monika Roman, 2020. "Spatial Integration of the Milk Market in Poland," Sustainability, MDPI, vol. 12(4), pages 1-17, February.
    3. Chelanga, Philemon & Jensen, Nathaniel & Muendo, Kavoi Mutuku, 2022. "Pastoral livestock market integration amidst improvements in physical and communication infrastructure: Evidence from northern Kenya," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 17(4), December.
    4. Fabinin, Akem Nina, 2021. "Pulse, Export and Staple Convenience Food: Market Analysis in West Africa," 2021 Conference, August 17-31, 2021, Virtual 315370, International Association of Agricultural Economists.
    5. Marwa Ben Abdallah & Maria Fekete Farkas & Zoltan Lakner, 2020. "Analysis of Dairy Product Price Transmission in Hungary: A Nonlinear ARDL Model," Agriculture, MDPI, vol. 10(6), pages 1-14, June.
    6. Acosta, Alejandro & Barrantes, Carlos & Ihle, Rico, 2020. "Animal disease outbreaks and food market price dynamics: Evidence from regime-dependent modelling and connected scatterplots," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), July.

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    More about this item

    Keywords

    Price Transmission; Market Structure; Food Price Formation; Food Policy Design;
    All these keywords.

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • C59 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Other
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General

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