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

  • Gomez, Miguel I.
  • Koerner, Julia
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    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.

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    File URL: http://purl.umn.edu/55930
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    Paper provided by Cornell University, Department of Applied Economics and Management in its series Working Papers with number 55930.

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    Date of creation: 16 Sep 2009
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    Handle: RePEc:ags:cudawp:55930
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