 Asymmetric Price Transmission in the Artisan Dairy Industry of HondurasJorge Fidel Barahona, Bernardo Trejos, Jai Wei Lee, Wanvilai Chulaphan and Chalermpon Jatuporn Asian Journal of Empirical Research, 2013, vol. 3, issue 7, 851-859 Abstract: This study investigates price transmission symmetry in the artisan dairy industry of Honduras. The data employed includes monthly prices of fluid milk, quesillo (i.e., a local cheese product with a consistency similar to mozzarella), fresh cheese, and dry cheese between January 1997 and April 2013. Both the Johansen multivariate approach and the Engle-Granger two step analyses confirm that fluid milk prices have a strong cointegration with prices of quesillo, fresh cheese and dry cheese. Furthermore, dairy products that exhibit high market competition such as fresh cheese and dry cheese showed negative asymmetric price transmission whereas those that exhibit low market competition such as quesillo showed positive asymmetric price transmission. Results also suggest that, regardless of the type of dairy product, artisan dairy producers will adjust more quickly when milk prices increase than when they decrease. Artisan dairy producers operate under low profit margins, so they will react faster when their profits shrink and slower when their profit margins increase. Keywords: Artisan dairy industry; Asymmetric price transmission; Asymmetric ECM (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:asi:ajoerj:v:3:y:2013:i:7:p:851-859:id:3498 Access Statistics for this article More articles in Asian Journal of Empirical Research from Asian Economic and Social Society |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.