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Price pass-through in UK fertiliser markets

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  • Allan, Michael

Abstract

Fertiliser prices have received considerable attention recently owing to elevated volatility, high prices, and supply disruptions arising from shocks to factor markets. In the UK, the domestic production environment for nitrogen fertiliser has undergone structural change at the same time. This work uses nonlinear autoregressive distributed lag (NARDL) techniques to examine the dynamics of price transmission from international bulk fertiliser prices to UK prices. Analysis fails to find evidence for long run asymmetry, but does identify evidence of short run-asymmetry in transmission of shocks from bulk prices to domestic prices.

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Handle: RePEc:ags:aes025:356739
DOI: 10.22004/ag.econ.356739
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