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Price linkage and transmission between shippers and retailers in the Frengh vegetable channel

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Author Info
Hassan, D.
Simioni, M.
Abstract

The existence and the king of asymmetry that characterize the relationships between shipping-point and retail prices are investigated for two major French fresh vegetables : tomatoes and chicory. Weekly data allow considering these relationships at very detailed levels such as region or supermarket chain. Moreover, the methodology proposes an implicit treatment of asymmetries in price transmission by using recently developed threshold cointegration methods. Our results do not give evidence to the widespread assertion that shipping-point price increases are completely and rapidly passed by middlemen on to consumers while there is a slower and less complete transmission of shipping-point price declines. As already emphasized in the literature, these results may be linked to the perishable nature of the two considered fresh vegetables. ...French Abstract : L'existence et l'ampleur des asymétries qui peuvent caractériser les relations entre les prix à l'expédition et les prix au détail, sont étudiées pour deux produits représentatifs de la filière "légumes" française : la tomate et l'endive. La disponibilité de données hebdomadaires permet d'étudier ces relations à des niveaux de détail aussi fins que la région ou le supermarché. De plus, un traitement implicite des asymétries est proposé via l'utilisation des développements récents sur les modélisations à seuils en analyse de la cointégration entre séries temporelles. Les résultats obtenus ne confirment pas l'opinion très répandue selon laquelle les détaillants répercutent moins rapidement et complètement les baisses de prix à l'expédition sur leurs prix que les hausses. Comme déjà souligné dans la littérature, ces résultats pourraient tenir à la nature très périssables des deux produits étudiés.

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File URL: http://www.toulouse.inra.fr/centre/esr/wpRePEc/has200106.pdf
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Paper provided by French Institute for Agronomy Research (INRA), Economics Laboratory in Toulouse (ESR Toulouse) in its series Economics Working Paper Archive (Toulouse) with number 18.

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Length: 26 p.
Date of creation: 2001
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Handle: RePEc:rea:inrawp:18

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Postal: INRA ESR - BP27 - 31326 Castanet Tolosan cedex - France
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Postal: INRA ESR - BP27 - 31326 Castanet Tolosan cedex - France
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Related research
Keywords: PRICE TRANSMISSION ASYMMETRIES THRESHOLD COINTEGRATION FRESH VEGETABLES CHANNEL TOMATOES CHICORY FRANCE FILIERE PRIX A LA CONSOMMATION PRIX A LA PRODUCTION MODELE ECONOMETRIQUE TOMATE ENDIVE

Find related papers by JEL classification:
L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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References listed on IDEAS
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  1. Chavas, Jean-Paul & Cox, Thomas L. & Jesse, Edward, 1998. "Spatial allocation and the shadow pricing of product characteristics," Agricultural Economics, Blackwell, vol. 18(1), pages 1-19, January. [Downloadable!] (restricted)
  2. Rasmussen, Svend & Neilsen, A Hjortshoj, 1985. "The Impact of Quotas on the Optimal Adjustment of Milk Production at the Farm Level," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 12(4), pages 351-64.
  3. Oskam, Arie, 1989. "Principles of the EC Dairy Model," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 16(4), pages 463-97.
  4. Elhorst, J Paul, 1994. "Firm-Household Interrelationships on Dutch Dairy Farms," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 21(2), pages 259-76.
  5. Burrell, Alison, 1985. "Price Uncertainty under EC Milk Quotas," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 12(4), pages 335-50.
  6. Helming, John & Oskam, Arie & Thijssen, Geert, 1993. "A Micro-economic Analysis of Dairy Farming in the Netherlands," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 20(3), pages 343-63.
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