THE CORN-EGG PRICE TRANSMISSION MECHANISM

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Babula, Ronald A. ; Bessler, David A. (1990)
  • Subject: Demand and Price Analysis,
    mesheuropmc: food and beverages | embryonic structures | health care economics and organizations | digestive, oral, and skin physiology

A vector autoregression (VAR) model of corn, farm egg, and retail egg prices is estimated and shocked with a corn price increase. Impulse responses in egg prices, t-statistics for the impulse responses, and decompositions of forecast error variance are presented. Analyses of results provide insights on the corn/egg price transmission mechanism and on how corn price shocks pulsate through the egg-related economy.
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