EXPLAINING PRICE TRANSMISSION ASYMMETRY IN THE US PEANUT MARKETING CHAIN

n the paper, we study price transmission from wholesale peanut prices to retail peanut butter prices. Using monthly data since 1984, we show that, while an increase in peanut prices is almost immediately transferred to peanut butter prices, it takes several months for a price decrease to be reflected in the peanut butter prices. Besides, the long term price transmission effect also appears to be symmetric. The observed short and long-term asymmetry is explained as a result of profit maximizing inventory management and/or some degree of market power in peanut processing.


Subject(s):
Issue Date:
2004
Publication Type:
Conference Paper/ Presentation
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/20363
PURL Identifier:
http://purl.umn.edu/20363
Total Pages:
17
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2019-08-26

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