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Farm and Retail Food Prices

Listed author(s):
  • Freebairn, John W.

This paper analyses the relationship between monthly observations on farm level and retail level prices of three meats, seven fresh vegetables, five fresh fruits, eggs and cereals over the 1970's. A priori reasoning and results of Sim's casuality tests suggest that in most cases changes in farm prices cause changes in retail prices rather than the reverse or a simultaneous relationship. Markup price relationships are estimated. Most of the variation of retail prices is explained by the current farm price, lagged farm prices, a wage variable, and last period's retail price of a substitute product.

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Article provided by Australian Agricultural and Resource Economics Society in its journal Review of Marketing and Agricultural Economics.

Volume (Year): 52 (1984)
Issue (Month): 02 (August)

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Handle: RePEc:ags:remaae:12264
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  1. B. S. Fisher, 1981. "The Impact of Changing Marketing Margins on Farm Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(2), pages 261-263.
  2. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
  3. Hancock, Keith, 1976. "The Relation between Changes in Costs and Changes in Product Prices in Australian Manufacturing Industries 1949-50 to 1967-68," The Economic Record, The Economic Society of Australia, vol. 52(137), pages 53-68, March.
  4. R. McFall Lamm & Paul C. Westcott, 1981. "The Effects of Changing Input Costs on Food Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(2), pages 187-196.
  5. Saunders, Peter G, 1981. "Price Determination in Australian Manufacturing Firms: A Cross-Section Study," Australian Economic Papers, Wiley Blackwell, vol. 20(37), pages 359-375, December.
  6. Sims, Christopher A, 1972. "Money, Income, and Causality," American Economic Review, American Economic Association, vol. 62(4), pages 540-552, September.
  7. Hall, V B, 1980. "Excess Demand and Expectations Influences on Price Changes in Australian Manufacturing Industry," The Economic Record, The Economic Society of Australia, vol. 56(152), pages 69-81, March.
  8. Hernandez-Iglesias, C. & Hernandez-Iglesias, F., 1981. "Causality and the independence phenomenon : The case of the demand for money," Journal of Econometrics, Elsevier, vol. 15(2), pages 247-263, February.
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