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Testing The Competitiveness Of Food Price Spreads

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  • A. M. Azzam

Abstract

This paper develops and illustrates a test of the competitiveness of food price spreads. The test does not require information on the structure of the food industry or estimation of conjectural variations, but rather the prices of the intermediate inputs used to produce the raw farm product and the prices of the intermediate inputs that are combined with the raw farm product to produce the final consumer good. The test is applied to the US farm/wholesale beef market.

Suggested Citation

  • A. M. Azzam, 1992. "Testing The Competitiveness Of Food Price Spreads," Journal of Agricultural Economics, Wiley Blackwell, vol. 43(2), pages 248-256, May.
  • Handle: RePEc:bla:jageco:v:43:y:1992:i:2:p:248-256
    DOI: 10.1111/j.1477-9552.1992.tb00219.x
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    File URL: https://doi.org/10.1111/j.1477-9552.1992.tb00219.x
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    References listed on IDEAS

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    1. Bruce L. Gardner, 1975. "The Farm-Retail Price Spread in a Competitive Food Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(3), pages 399-409.
    2. Dunn, James E. & Heien, Dale, 1985. "The Demand For Farm Output," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 10(1), pages 1-10, July.
    3. Hall, Lana & Schmitz, Andrew & Cothern, James, 1979. "Beef Wholesale-Retail Marketing Margins and Concentration," Economica, London School of Economics and Political Science, vol. 46(183), pages 295-300, August.
    4. A. M. Azzam & E. Pagoulatos, 1990. "Testing Oligopolistic And Oligopsonistic Behaviour: An Application To The Us Meatā€Packing Industry," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(3), pages 362-370, September.
    5. Schroeter, John R, 1988. "Estimating the Degree of Market Power in the Beef Packing Industry," The Review of Economics and Statistics, MIT Press, vol. 70(1), pages 158-162, February.
    6. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 38(2), pages 112-134.
    7. White, T. Fred, Jr. & Duewer, Lawrence A. & Ginzel, John & Bohall, Robert & Crawford, Terry, 1991. "Choice Beef Prices and Price Spreads Series: Methodology and Revisions," Staff Reports 278373, United States Department of Agriculture, Economic Research Service.
    8. Schroeter, John R. & Azzam, Azzeddine M., 1990. "Measuring Market Power in Multi-Product Oligopolies: The U.S. Meat Industry," Staff General Research Papers Archive 11112, Iowa State University, Department of Economics.
    9. B. Wade Brorsen & Jean-Paul Chavas & Warren R. Grant & L. D. Schnake, 1985. "Marketing Margins and Price Uncertainty: The Case of the U.S. Wheat Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(3), pages 521-528.
    10. Appelbaum, Elie, 1979. "Testing price taking behavior," Journal of Econometrics, Elsevier, vol. 9(3), pages 283-294, February.
    11. Parks, Richard W, 1971. "Price Responsiveness of Factor Utilization in Swedish Manufacturing, 1870-1950," The Review of Economics and Statistics, MIT Press, vol. 53(2), pages 129-139, May.
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