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Asymmetry in Price Transmission in Agricultural Markets

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  • Alain McLaren

Abstract

This paper explores the asymmetries in price transmission from international to local markets. We expect the presence of large intermediaries in agricultural markets to lead to a stronger price transmission when international prices decline than when they rise. The empirical evidence confirms the presence of asymmetric price transmission consistent with the presence of large intermediaries with monopsony power.

Suggested Citation

  • Alain McLaren, 2015. "Asymmetry in Price Transmission in Agricultural Markets," Review of Development Economics, Wiley Blackwell, vol. 19(2), pages 415-433, May.
  • Handle: RePEc:bla:rdevec:v:19:y:2015:i:2:p:415-433
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    File URL: http://hdl.handle.net/10.1111/rode.12151
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    Cited by:

    1. Mohammad Jahangir Alam & Andrew M. McKenzie & Ismat Ara Begum & Jeroen Buysse & Eric J. Wailes & Guido Huylenbroeck, 2016. "Asymmetry Price Transmission in the Deregulated Rice Markets in Bangladesh: Asymmetric Error Correction Model," Agribusiness, John Wiley & Sons, Ltd., vol. 32(4), pages 498-511, November.
    2. Donald MacLaren, 2016. "The Contingent Tariff of the Special Safeguard Mechanism: What Happens When Markets are Imperfectly Competitive?," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(1), pages 62-83, February.
    3. Jin Guo & Tetsuji Tanaka, 2020. "Dynamic Transmissions and Volatility Spillovers between Global Price and U.S. Producer Price in Agricultural Markets," Journal of Risk and Financial Management, MDPI, Open Access Journal, vol. 13(4), pages 1-20, April.

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