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Title: Spatial Price Dynamics in U.S. Regional Broiler Markets
Authors: Awokuse, Titus O.
Bernard, John C.
Keywords: broiler prices
market integration
JEL Codes: Q13
Issue Date: 2007-12
Abstract: The U.S. broiler industry is highly vertically integrated and increasingly concentrated in the number of firms and production areas. These structural elements could have implications for performance and the functioning of the law of one price (LOP) across regions. This article investigates this using data on four regional markets. Cointegration results indicate that regional prices are spatially linked in the long run, but pairwise cointegration was not found, suggesting that the LOP does not hold. Causality tests confirm the relative importance of price shocks from the South. This finding is reflective of price coordination by firms with production in multiple regions.
Institution/Association: Journal of Agricultural and Applied Economics>Volume 39, Number 03, December 2007
Total Pages: 10
From Page: 447
To Page: 456
Collections:Volume 39, Number 03, December 2007

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