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Price transmission analysis in the Greek milk market

Journal of Economics and Business - SPOUDAI

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Title Price transmission analysis in the Greek milk market
 
Creator Reziti, Ioanna
 
Subject asymmetric price transmission; cointegration; error correction; milk market.
 
Description This paper examines the farm-retail price transmission mechanism in the Greek milk market
by using monthly data for the period from January 1998 to June 2014. Through this period,
the dairy industry underwent significant changes, resulting in increasing concentration in the
market for fresh pasteurized milk. On the other hand, in the past five years, the number of
dairy farms has decreased dramatically. The milk supply chain can be described as an
atomized raw milk production sector confronted by a quite concentrated dairy sector. We
apply an error correction model to test for asymmetric behaviour in the transmission process.
The empirical results indicate that transmission between producer and consumer milk prices
in Greece is asymmetric in both the short and the long run, implying that retailers exercise
market power over producers.
JEL classification: C10, L11, Q10.
Keywords: asymmetric price transmission, cointegration, error correction, milk market.
 
Publisher University of Piraeus
 
Contributor —
 
Date 2015-03-30
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
—
 
Format application/pdf
 
Identifier http://spoudai.unipi.gr/index.php/spoudai/article/view/121
 
Source SPOUDAI - Journal of Economics and Business; Vol 64, No 4 (2014); 75-86
2241-424X
1105-8919
 
Language eng
 
Relation http://spoudai.unipi.gr/index.php/spoudai/article/view/121/209