Asymmetry in Price Transmission in Agricultural Markets

Alain McLaren

Review of Development Economics, 2015, vol. 19, issue 2, 415-433

Abstract: This paper explores the asymmetries in price transmission from international to local markets. We expect the presence of large intermediaries in agricultural markets to lead to a stronger price transmission when international prices decline than when they rise. The empirical evidence confirms the presence of asymmetric price transmission consistent with the presence of large intermediaries with monopsony power.

Date: 2015
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