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The impact of avian influenza on the Korean egg market: Who benefited?

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  • Seok, Jun Ho
  • Kim, GwanSeon
  • Reed, Michael R.
  • Kim, Soo-Eun

Abstract

The historical decomposition and directed acyclic graph methods are employed to estimate the effect of avian influenza in Korea on egg price transmission between the farm, wholesale, and retail levels. Our findings suggest that farm and retail egg prices are connected by the wholesale price. We also find that the farm-wholesale and the wholesale-retail margins increase during the avian influenza period. Our results imply that the retailer and wholesaler use their market power to increase their price during the food safety crisis. Therefore, the Korean government should control market power by allowing more emergency egg imports.

Suggested Citation

  • Seok, Jun Ho & Kim, GwanSeon & Reed, Michael R. & Kim, Soo-Eun, 2018. "The impact of avian influenza on the Korean egg market: Who benefited?," Journal of Policy Modeling, Elsevier, vol. 40(1), pages 151-165.
    • Handle: RePEc:eee:jpolmo:v:40:y:2018:i:1:p:151-165
    DOI: 10.1016/j.jpolmod.2017.11.003
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    Cited by:

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    4. Daniele Curzi & Maria Garrone & Alessandro Olper, 2021. "Import Competition and Firm Markups in the Food Industry," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(4), pages 1433-1453, August.

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    More about this item

    Keywords

    Avian influenza; Directed acyclic graph; Historical decomposition; Market power; Price transmission;
    All these keywords.

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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