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Wholesale spreads and the dynamics of retail price volatility in Indian rice markets

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  • R. Jha
  • H. K. Nagarajan

Abstract

A general model is proposed of asymmetric price transmission to examine the volatility of retail spreads in vertical markets, with endogenous overshooting of the wholesale spreads. The model is tested with Indian data and significant asymmetries are discovered.

Suggested Citation

  • R. Jha & H. K. Nagarajan, 2002. "Wholesale spreads and the dynamics of retail price volatility in Indian rice markets," Applied Economics Letters, Taylor & Francis Journals, vol. 9(6), pages 387-390.
    • Handle: RePEc:taf:apeclt:v:9:y:2002:i:6:p:387-390
    DOI: 10.1080/13504850110086026
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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.
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    4. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119, Decembrie.
    5. George, Thomas J & Kaul, Gautam & Nimalendran, M, 1991. "Estimation of the Bid-Ask Spread and Its Components: A New Approach," Review of Financial Studies, Society for Financial Studies, vol. 4(4), pages 623-656.
    6. Dale M. Heien, 1980. "Markup Pricing in a Dynamic Model of the Food Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(1), pages 10-18.
    7. James P. Houck, 1977. "An Approach to Specifying and Estimating Nonreversible Functions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 59(3), pages 570-572.
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    Cited by:

    1. Kenji Matsui, 2010. "Effects of wholesaler concentration on retailers by format: evidence from Japanese brand-level price data," Applied Economics, Taylor & Francis Journals, vol. 42(18), pages 2379-2391.

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