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Spatial Dispersion of Retail Margins: Evidence from Turkish Agricultural Prices

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  • Hakan Yilmazkuday

    (Department of Economics, Florida International University)

Abstract

The farmer share of retail prices is shown to be about 16 percent, corresponding to about 84 percent of a distribution share, on average across agricultural products and regions within Turkey. The share of transportation costs in retail prices is only about 7 percent, while the share of retail margins is about 77 percent of retail prices. The dispersion of retail prices across regions is shown to be mostly due to local wages and variable markups, while the contribution of traded-input prices is relatively small. Accordingly, the high dispersion of farmer prices across locations is not reflected in the dispersion of retail prices due to the high contribution of retail margins. These retail margins are also shown to account for about one third of the consumer welfare dispersion across regions and more than half of the consumer welfare dispersion across products.

Suggested Citation

  • Hakan Yilmazkuday, 2018. "Spatial Dispersion of Retail Margins: Evidence from Turkish Agricultural Prices," Working Papers 1802, Florida International University, Department of Economics.
    • Handle: RePEc:fiu:wpaper:1802
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    References listed on IDEAS

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    Cited by:

    1. Malloy Brandon, 2018. "The Supply Network and Price Dispersion in the Canadian Gasoline Market," Review of Network Economics, De Gruyter, vol. 17(2), pages 75-107, June.
    2. Takechi, Kazutaka, 2023. "Quality sorting, Alchian–Allen effect, and distance," Economics Letters, Elsevier, vol. 222(C).
    3. Crucini, Mario J. & Yilmazkuday, Hakan, 2014. "Understanding long-run price dispersion," Journal of Monetary Economics, Elsevier, vol. 66(C), pages 226-240.

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    More about this item

    Keywords

    Agricultural Prices; Farmer Share; Distribution Share; Retail Margins; Consumer Welfare Dispersion;
    All these keywords.

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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