Test of Asymmetric Price Transmission for Garlic and Onion

Byungil Ahn

Journal of Rural Development/Nongchon-Gyeongje, 2007, vol. 30, issue 3

Abstract: This paper investigates asymmetric price transmissions between the producer and consumer prices for fresh vegetables. In this paper, the existing asymmetric price transmission model is extended by incorporating the impacts of rise and fall in the producer price at past periods. Tests for the asymmetric price transmissions for garlic and onion indicate that when the producer prices rise, the increases in the consumer prices are larger than the decreases in the consumer prices that are incurred by the falls in the producer prices. These positive asymmetric price transmissions may suggest the existence of market power in the markets of these fresh vegetables.

Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers)
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:ags:jordng:290478

DOI: 10.22004/ag.econ.290478

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