Do retail coffee prices increase faster than they fall? Asymmetric price transmission in France, Germany and the United States

This investigation examines price transmission asymmetries (PTA) between international and retail coffee prices in the US, France and Germany. Differences in price transmission mechanisms provide evidence for disparities in market structure and market performance across countries. Although all processors of roasted coffee purchase green coffee at the same price in the international markets, one finds significant differences in retail prices among these countries. The study develops an Error Correction (EC) representation model to assess PTA of non-stationary models. Finally, it claims that identifying differences in price transmission asymmetry is an approach to compare market structure across countries.


Keywords:
Issue Date:
Sep 16 2009
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/55930
Total Pages:
31
Series Statement:
Working Paper
2009-29




 Record created 2017-04-01, last modified 2017-08-25

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