 Price and volatility transmission between primary and scrap metal marketsIrene M. Xiarchos and Jerald J. Fletcher Resources, Conservation & Recycling, 2009, vol. 53, issue 12, 664-673 Abstract: The relationship between primary and scrap prices has been hypothesized for the most part as unidirectional, characterized by spillovers from primary to scrap prices. The purpose of this study is to evaluate empirically the dynamic interactions between primary and scrap metal prices through multivariate time series methods. In addition, the study expands the investigation at the level of volatility transmission, which has not been previously examined. The metal prices utilized are for copper, lead, and zinc for the period 1984–2001. The paper demonstrates differing long run and short run links. Scrap prices do not improve the long run interpretation of primary prices, but information flows from the scrap to the primary markets exist in the short run. Additionally, the copper and lead markets exhibit bidirectional information flows in terms of volatility transmission. The analysis provides valuable insight into the interactions of the primary and scrap metal sectors which can be used to improve forecasting and planning. Keywords: Recycling; Primary and scrap metal prices; Cointegration; Volatility spillovers (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:recore:v:53:y:2009:i:12:p:664-673 DOI: 10.1016/j.resconrec.2009.04.020 Access Statistics for this article Resources, Conservation & Recycling is currently edited by Ming Xu More articles in Resources, Conservation & Recycling from Elsevier |
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