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Do retail coffee prices increase faster than they fall? Asymmetric price transmission in France, Germany and the United States

Author

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  • Gomez, Miguel I.
  • Koerner, Julia

Abstract

This investigation examines price transmission asymmetries (PTA) between international and retail coffee prices in the US, France and Germany. Differences in price transmission mechanisms provide evidence for disparities in market structure and market performance across countries. Although all processors of roasted coffee purchase green coffee at the same price in the international markets, one finds significant differences in retail prices among these countries. The study develops an Error Correction (EC) representation model to assess PTA of non-stationary models. Finally, it claims that identifying differences in price transmission asymmetry is an approach to compare market structure across countries.

Suggested Citation

  • Gomez, Miguel I. & Koerner, Julia, 2009. "Do retail coffee prices increase faster than they fall? Asymmetric price transmission in France, Germany and the United States," Working Papers 55930, Cornell University, Department of Applied Economics and Management.
  • Handle: RePEc:ags:cudawp:55930
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    File URL: http://purl.umn.edu/55930
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    Cited by:

    1. Durevall, Dick, 2017. "Cost Pass-Through in the Swedish Coffee Market," Working Papers in Economics 697, University of Gothenburg, Department of Economics.

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    Keywords

    coffee; markets; Food Consumption/Nutrition/Food Safety; Marketing;

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