Asymmetry in Price Transmission in Agricultural Markets

descriptionPublicationkeyboard_double_arrow_right Article , Preprint 17 Apr 2015 English Publisher:WileyJournal:Review of Development Economics, volume 19, pages 415-433 (issn: 1363-6669, eissn: 1467-9361,

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Authors: McLaren Alain;

doi: 10.1111/rode.12151

Asymmetry in Price Transmission in Agricultural Markets

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Abstract

AbstractThis paper explores the asymmetries in price transmission from international to local markets. We expect the presence of large intermediaries in agricultural markets to lead to a stronger price transmission when international prices decline than when they rise. The empirical evidence confirms the presence of asymmetric price transmission consistent with the presence of large intermediaries with monopsony power.

Related Organizations

University of Geneva
Switzerland

Keywords

Asymmetric price transmission, agricultural markets

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