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Price linkage and transmission between shippers and retailers in the Frengh vegetable channel

Listed author(s):
  • Hassan, D.
  • Simioni, M.

The existence and the king of asymmetry that characterize the relationships between shipping-point and retail prices are investigated for two major French fresh vegetables : tomatoes and chicory. Weekly data allow considering these relationships at very detailed levels such as region or supermarket chain. Moreover, the methodology proposes an implicit treatment of asymmetries in price transmission by using recently developed threshold cointegration methods. Our results do not give evidence to the widespread assertion that shipping-point price increases are completely and rapidly passed by middlemen on to consumers while there is a slower and less complete transmission of shipping-point price declines. As already emphasized in the literature, these results may be linked to the perishable nature of the two considered fresh vegetables. ...French Abstract : L'existence et l'ampleur des asymétries qui peuvent caractériser les relations entre les prix à l'expédition et les prix au détail, sont étudiées pour deux produits représentatifs de la filière "légumes" française : la tomate et l'endive. La disponibilité de données hebdomadaires permet d'étudier ces relations à des niveaux de détail aussi fins que la région ou le supermarché. De plus, un traitement implicite des asymétries est proposé via l'utilisation des développements récents sur les modélisations à seuils en analyse de la cointégration entre séries temporelles. Les résultats obtenus ne confirment pas l'opinion très répandue selon laquelle les détaillants répercutent moins rapidement et complètement les baisses de prix à l'expédition sur leurs prix que les hausses. Comme déjà souligné dans la littérature, ces résultats pourraient tenir à la nature très périssables des deux produits étudiés.

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Paper provided by French Institute for Agronomy Research (INRA), Economics Laboratory in Toulouse (ESR Toulouse) in its series Economics Working Paper Archive (Toulouse) with number 18.

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Length: 26 p.
Date of creation: 2001
Handle: RePEc:rea:inrawp:18
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INRA ESR - BP27 - 31326 Castanet Tolosan cedex - France

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Order Information: Postal: INRA ESR - BP27 - 31326 Castanet Tolosan cedex - France

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