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Abstract
The research analyzes the price transmission among the Costa Rican markets of cattle, beef
and milk, accounting for asymmetric behavior and structural breaks. Monthly price data
covering the first month of 1998 to the fourth month of 2008 were used. Price transmission
between each market pair was found. The Price adjustment is consistent at 1% of significant
with the behaviour expected. Cattle prices adjust in the milk - cattle relationship, beef meat
prices adjust in the cattle - beef meat relation and in the milk - beef meat relation. This finding
supports the statement regarding the leading position of “Dos Pinos” as the main player in the
market. The results of the asymmetric analysis are not as expected. The coefficients of both
adjustments (positive and negative) are not significantly different. The equations allowing for
structural break affects the estimates: first after the break the elasticities became higher than 1,
second there is more evidence of cointegration and third the adjustment coefficients are
significant only when a change in the long run is allowed.