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Asymmetry of price transmission within the french value chain of seafood products

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Author Info
Gonzales, F.
Guillotreau, P.
Le Grel, L.
Simioni, M.
Abstract

A recent study in agricultural products has brought out evidence of asymmetrical transmission of price changes according to the sign (positive or negative) of past variation. Interestingly, asymmetry was more commonplace for products with a lower elasticity of supply due to the perishable nature of products. A similar study based on TAR and M-TAR cointegration models is carried out on the French markets for fish products. In particular, this paper investigates the relation between the characteristics of supply (farmed or wild-caught species) and the results regarding asymmetry of price transmission along the supply chain of fresh products. Like in previous studies, it is expected that farming, by increasing the security of supply, show less asymmetry than wild-caught products. Results bring no evidence of asymmetric price transmission in any avlue chain, whatever the origin of the supply, farmed or wild. It is nevertheless found differences in terms of speed of adjustment and size of margins taht can be interpreted as a consequence of the uncertainty in the conditions of supply. ...French Abstract : Des travaux en économie agricole ont récemment montré que le caractère asymétrique de la transmission des prix le long d'une filière apparaissait fréquemment pour des produits avec une faible élasticité de l'offre due au caractère périssable de ces produits. Un travail similaire utilisant des modèles de cointégration de type TAR et MTAR, est ici effectué pour des produits de la pêche. Plus précisément, ce travail recherche s'il existe une relation entre le type d'asymétrie mis en évidence et les caractéristiques du produit étudié : espèce sauvage ou espèce d'élevage. L'hypothèse testée est que les produits provenant d'élevage sont caractérisés par une transmission asymétrique moindre ampleur que les produits sauvages, l'élevage permettant de réduire les incertitudes quant à l'offre. Les résultats empiriques n'apportent aucune validation de cette hypothèse. Néanmoins, ils mettent en évidence une forte différence quant aux vitesses d'ajustement à court terme qui peuvent être interprétées comme une conséquence de l'incertitude dans les conditions d'offre des produits sauvages.

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Publisher Info
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 49.

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Length: 10 p.
Date of creation: 2003
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Handle: RePEc:rea:inrawp:49

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Keywords: ASYMMETRIC PRICE TRANSMISSION; COINTEGRATION; FISH VALUE CHAINS; TAR AND M-TAR MODELS ; ECONOMETRIE; PRIX; FILIERE; PRODUIT DE LA PECHE; COMMERCIALISATION; MISE EN MARCHE; ELEVAGE;

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Find related papers by JEL classification:
Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Other versions:
  2. Meyer, Jochen & von Cramon-Taubadel, Stephan, 2002. "Asymmetric Price Transmission: A Survey," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24822, European Association of Agricultural Economists. [Downloadable!]
  3. von Cramon-Taubadel, Stephan, 1998. "Estimating Asymmetric Price Transmission with the Error Correction Representation: An application to the German Pork Market," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 25(1), pages 1-18.
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    Other versions:
  5. Bailey, Deevon & Brorsen, B. Wade, 1989. "Price Asymmetry In Spatial Fed Cattle Markets," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 14(02), December. [Downloadable!]
  6. Engle, Robert F & Granger, Clive W J, 1987. "Co-integration and Error Correction: Representation, Estimation, and Testing," Econometrica, Econometric Society, vol. 55(2), pages 251-76, March. [Downloadable!] (restricted)
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    Other versions:
  8. Enders, Walter & Granger, Clive W J, 1998. "Unit-Root Tests and Asymmetric Adjustment with an Example Using the Term Structure of Interest Rates," Journal of Business & Economic Statistics, American Statistical Association, vol. 16(3), pages 304-11, July.
    Other versions:
  9. Dennis W. Carlton, 1987. "The Theory and the Facts of How Markets Clear: Is Industrial Organization Valuable for Understanding Macroeconomics?," NBER Working Papers 2178, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  10. Enders, Walter & Siklos, Pierre L, 2001. "Cointegration and Threshold Adjustment," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(2), pages 166-76, April.
  11. Andrew Eckert, 2002. "Retail price cycles and response asymmetry," Canadian Journal of Economics, Canadian Economics Association, vol. 35(1), pages 52-77, February. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Ben Shepherd, 2005. "Market Power in International Commodity Processing Chains: Preliminary Results from the Coffee Market," International Trade 0511013, EconWPA. [Downloadable!]
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