Price transmission for organic and conventional milk products in Sweden

Hanna Lindström ()
Additional contact information
Hanna Lindström: a The Department of Economics at Umeå School of Business, Economics and Statistics, Umeå University, 901 87 Umeå, Sweden

No 22, HFI Working Papers from Institute of Retail Economics (Handelns Forskningsinstitut)

Abstract: Although much empirical work addresses the efficiency of food supply chains by studying price transmission, studies on quality-differentiated food are scarce, and particularly for organic food vis-á-vis conventional food. This study adds to this scarce literature by analysing wholesale to retail price transmission for organic and conventional milk in the Swedish milk sector, using time-series analysis applied to monthly price data for the period Jan 2007–Nov 2017. Estimations are performed using the non-linear ARDL model which allows for asymmetric cointegration of prices and a simultaneous analysis of short- and long-run asymmetry, the latter of which has been largely overlooked in previous studies. In the case of conventional milk, results indicate positive asymmetries both in the short-run and the long-run. For organic milk, the long-run positive asymmetry is smaller and not statistically significant in all specifications. Organic consumers are therefore likely to experience smaller differences between surplus losses and gains, following positive and negative wholesale price changes, respectively.

Keywords: Price transmission; organic food; non-linear ARDL (search for similar items in EconPapers)
JEL-codes: C22 L11 Q13 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2021-10-01
New Economics Papers: this item is included in nep-agr and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://handelnsforskningsinstitut.se/wp-content/u ... hfi22sammanfogad.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:hfiwps:0022

Access Statistics for this paper

More papers in HFI Working Papers from Institute of Retail Economics (Handelns Forskningsinstitut) Handelns Forskningsinstitut, Regeringsgatan 60, 103 29 Stockholm, Sweden.
Bibliographic data for series maintained by Hans Seerar Westerberg ().