Price Transmission Analysis: the Case of Milk Products in Russia

This paper investigates vertical price transmission along the milk supply chain in the Russian market using a vector autoregression model. Monthly farm-gate and retail prices were used in the analysis. Using cointegration technique, we find no empirical evidence for cointegration between farm-gate and retail prices. We show that there is bidirectional Granger causality from farm to retail prices and vice versa. However, response of the farm-gate price to a change in retail price is greater and slightly longer than price response of the retail price to a change at the farm level. The results support the assumption that price changes are not transmitted efficiently from one level to another.


Issue Date:
2018
Publication Type:
Journal Article
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/276092
ISSN:
1804-1930
Language:
English
Published in:
AGRIS on-line Papers in Economics and Informatics, 10, 1
Page range:
15-23




 Record created 2018-08-22, last modified 2020-10-28

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