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Spatial Analysis of Market Power of Cassava Starch in Brazil

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  • Pancera, Aline
  • Alves, Alexandre

Abstract

The present study aimed to investigate the spatial price transmission of starch, addressing the major producing regions. The specific objectives were to identify their long-term behavior and to verify possible asymmetries on the price transmission. The analysis of price transmission among the markets indicates that prices cointegrated themselves in the long run, leading to the Vector Error Correction Model (VECM). Through the econometric regressions it was possible to verify the application of the Law of Price for only a region under analysis. This study concluded that the markets for starch were not spatially integrated. Thus, it was possible to infer that the market for starch showed a competitive inefficiency.

Suggested Citation

  • Pancera, Aline & Alves, Alexandre, 2015. "Spatial Analysis of Market Power of Cassava Starch in Brazil," 2015 Conference, August 9-14, 2015, Milan, Italy 210948, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae15:210948
    DOI: 10.22004/ag.econ.210948
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    References listed on IDEAS

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