OWN AND CROSS PASS-THROUGH IN A STRUCTURAL FRAMEWORK

Vardges Hovhannisyan and Marin Bozic

No 150993, 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. from Agricultural and Applied Economics Association

Abstract: The article offers measures of own and cross cost pass-through in a structural framework. Unlike the traditional reduced-form analysis used in the previous literature, our approach is applicable in situations where firm marginal cost data are unobserved. The empirical value of the model is illustrated in an application to retail pass-through for national and store brand yogurt using an inverse demand derived from the economic theory. We find that ignoring cross pass-through between the brands biases own pass-through estimates.

Keywords: Agribusiness; Agricultural and Food Policy; Demand and Price Analysis; Industrial Organization; Marketing (search for similar items in EconPapers)
Pages: 2
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea13:150993

DOI: 10.22004/ag.econ.150993

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