Local polynomial fitting and spatial price relationships: price transmission in EU pork markets

Serra, Teresa; Gil, José María; Goodwin, Barry K.

doi:10.1093/erae/jbl013

Cited by 76 publications

(70 citation statements)

References 49 publications

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“…The relatively low overall degree of dependence, and, more importantly, the evidence in favor of asymmetric price co-movements, suggest that the three principal EU olive oil markets cannot be thought of as one great pool. In this regard, the findings of the present work are in line with those of Serra et al (2006), who reported evidence of asymmetric price transmission in four major EU pork markets, and Fousekis (2007), who found considerable segmentation in 15 geographically separated markets of the EU.…”

Section: Discussionsupporting

confidence: 92%

“…Under spatial market segmentation, profitability opportunities are not fully exploited resulting into efficiency losses (e.g. Asche et al, 1999;Serra et al, 2006;Reboredo, 2011). 4 C. Emmanouilides et al / Span J Agric Res (2014) 12(1): 3-14 Although market globalization, in general, and food market integration in particular, has been an issue of great importance for both economists and policy makers, the number of recent formal studies on the price interrelationships and/or on the validity of the LOP for spatial EU agri-food markets has been rather small.…”

Section: Introductionmentioning

confidence: 99%

“…4 C. Emmanouilides et al / Span J Agric Res (2014) 12(1): 3-14 Although market globalization, in general, and food market integration in particular, has been an issue of great importance for both economists and policy makers, the number of recent formal studies on the price interrelationships and/or on the validity of the LOP for spatial EU agri-food markets has been rather small. Serra et al (2006) investigated price adjustment (which is a necessary but not a sufficient condition for the LOP to hold) among four major EU pork markets using both the parametric Threshold Autoregressive Model (TAR) and the non parametric Local Linear Regression (LLR) models. They found evidence of asymmetries in price transmission.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Price dependence in the principal EU olive oil markets

Emmanouilides¹,

Fousekis²,

Grigoriadis³

2013

Span. j. agric. res.

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The objective of this paper is to assess the degree and the structure of price dependence in the principal EU olive oil markets (Spain, Italy and Greece). To this end, it utilizes monthly olive oil price data and the statistical tool of copulas. The empirical results suggest that prices are likely to boom together but not to crash together; this is especially true for the prices of the two most important players, Italy (importer) and Spain (exporter). The finding of asymmetric price co-movements implies that the three principal spatial olive oil markets in the EU cannot be thought of as one great pool.

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Section: Discussionsupporting

confidence: 92%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Price dependence in the principal EU olive oil markets

Emmanouilides¹,

Fousekis²,

Grigoriadis³

2013

Span. j. agric. res.

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“…First, the evidence of non-linear price adjustment in the ex-vessel-wholesale market channels suggests the existence of some barriers to free trade (Serra et al, 2006). Such barriers might include high transaction costs and imperfect information.…”

Section: Discussionmentioning

confidence: 99%

Price Transmission and Threshold Behavior in the African Catfish Supply Chain in Uganda

Bukenya

Ssebisubi²

2015

Journal of African Business

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The issue of price linkage in the catfish supply chain in Uganda is important because catfish has become an important traded species with exports to regional markets rising even faster than production, yet limited research has been undertaken to understand the linkages and the non-linearity in the price transmission mechanism. This paper explores the issue using monthly price data from January 2006 to August 2013, and applies threshold autoregressive approaches to test for the existence of a long-run relationship and price asymmetry. The results show that prices in the catfish value chain are tied together by a long-run relationship. It is also revealed that ex-vessel and wholesale price adjustments to retail price changes are symmetric while ex-vessel price adjustments to wholesale price changes are shown to be asymmetric. The direction of causal relationships was observed from the retail to the wholesale and ex-vessel markets, indicating that retailers are the price leaders in the Uganda catfish supply chain.

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“…In an equilibrium concept, in a well-functioning market, the price shocks occurring in one market cause responses in other markets. As a consequence, prices of the same products in two separate locations will differ by transport costs from the cheapest market to the most expensive one (Serra and Goodwin, 2006).…”

Section: Introductionmentioning

confidence: 99%

Spatial Price Transmission of Milk Prices Among the Visegrad Countries

Vargová

Rajčániová

2017

Visegrad Journal on Bioeconomy and Sustainable Development

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When trading with homogenous goods, consumers are not able to distinguish between individual goods and thus not willing to pay a higher price, if the same product is available for lower price. This leads to an interesting effect, when prices of homogenous goods in different locations in an open market tend to get closer. It is the result of the so-called Law of One Price. Because of the Law of One Price, producers are affected not only by vertical price transmission, but also horizontally. The aim of this paper is to assess the linkage and patterns among the prices of cow's raw milk in the V4 countries. We apply the price transmission methodology, such as unit root tests, cointegration tests, error correction models, and Granger causality tests. Monthly data for producer prices of raw milk are used, covering the period from January 2005 to June 2017. Our results confirm the existence of the Law of One Price when milk producer prices in different locations are co-integrated.

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Local polynomial fitting and spatial price relationships: price transmission in EU pork markets

Cited by 76 publications

References 49 publications

Price dependence in the principal EU olive oil markets

Price dependence in the principal EU olive oil markets

Price Transmission and Threshold Behavior in the African Catfish Supply Chain in Uganda

Spatial Price Transmission of Milk Prices Among the Visegrad Countries

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