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Price Transmission Asymmetries in the Spanish Lamb Sector

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  • Ben Kaabia, Monia
  • Gil, Jose Maria
  • Boshnjaku, L.

Abstract

The analysis of asymmetries in the price transmission mechanism at different levels of the marketing chain provides some interesting information about the degree of competition in vertical related markets. The objective of this paper is to investigate the non-linear adjustments of prices along the lamb sector in Spain. The methodology used is based on the multivariate approach to specify and estimate a Threshold Autoregressive Model. Price relationships at farm, wholesale and retail levels are considered. Results indicate that in the long-run price transmission is perfect and any supply or demand shocks are fully transmitted to all prices in the system. In the shortrun, analyses suggest that the high degree of horizontal concentration among retailers allow them to have market power. Responses to any shock generate an increase of the retail price spread which is more evident when prices show an upward trend.

Suggested Citation

  • Ben Kaabia, Monia & Gil, Jose Maria & Boshnjaku, L., 2002. "Price Transmission Asymmetries in the Spanish Lamb Sector," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24908, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae02:24908
    DOI: 10.22004/ag.econ.24908
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    Cited by:

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    2. Sayed H. Saghaian, 2007. "Beef safety shocks and dynamics of vertical price adjustment: The case of BSE discovery in the U.S. beef sector," Agribusiness, John Wiley & Sons, Ltd., vol. 23(3), pages 333-348.
    3. Pratap Kumar JENA, 2016. "Commodity market integration and price transmission: Empirical evidence from India," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(3(608), A), pages 283-306, Autumn.
    4. Jalonoja, Kati & Liu, Xing & Pietola, Kyosti, 2006. "Asymmetric Transmission of Price Information Between the Meat Market of Finland and Other EU Countries - Testing for Signals on Oligopolistic Behaviour," Discussion Papers 11861, MTT Agrifood Research Finland.
    5. Pratap Kumar JENA, 2016. "Commodity market integration and price transmission: Empirical evidence from India," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(3(608), A), pages 283-306, Autumn.
    6. Ankamah-Yeboah, Isaac, 2012. "Spatial Price Transmission in the Regional Maize Markets in Ghana," MPRA Paper 49720, University Library of Munich, Germany.
    7. Meyer, Jochen, 2004. "Measuring market integration in the presence of transaction costs--a threshold vector error correction approach," Agricultural Economics, Blackwell, vol. 31(2-3), pages 327-334, December.
    8. Bakucs, Lajos Zoltan & Ferto, Imre & Hockmann, Heinrich & Perekhozhuk, Oleksandr, 2009. "Market power on the edge? An analysis of the German and Hungarian hog markets," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 58(08), pages 1-9, November.
    9. Ihle, Rico & von Cramon-Taubadel, Stephan, 2008. "A Comparison of Threshold Cointegration and Markov-Switching Vector Error Correction Models in Price Transmission Analysis," 2008 Conference, April 21-22, 2008, St. Louis, Missouri 37603, NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    10. Bakucs, Lajos Zoltán, 2005. "Kereskedelmi árrés és ártranszmisszió a magyar sertéshúspiacon [Commercial margins and price transmission on the Hungarian pigmeat market]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 648-663.

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