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Demand peaks and cost pass-through: a case of Irans's poultry market

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  • Zamani, O.
  • Bittmann, T.
  • Loy, J.-P.

Abstract

This article examines cost pass-through and pricing behavior for fresh poultry meat during periods of peak demand. The analysis is conducted on weekly poultry wholesale-retail price data collected in all provinces of Iran from 2010 to 2016. Two traditional festivals are identified as periods of peak demand. We use a panel co-integration framework to estimate pass-through elasticity and speed of adjustment during peak and off-peak periods. We find that wholesale and retail prices increase during these periods, while retail margins decline. We interpret these findings as increased retail competition during periods of peak demand. Moreover, our findings confirm a more sluggish price adjustment during these periods. Acknowledgement : This research was supported by Kiel University funding.

Suggested Citation

  • Zamani, O. & Bittmann, T. & Loy, J.-P., 2018. "Demand peaks and cost pass-through: a case of Irans's poultry market," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277490, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:277490
    DOI: 10.22004/ag.econ.277490
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    1. Omid Zamani & Thomas Bittmann & Jens‐Peter Loy, 2022. "The role of temperature for seasonal market integration: a case study of poultry in Iran," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(1), pages 187-215, January.

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