Multiple-regime price transmission between wheat and wheat flour prices in Korea

Jung Hun Han and Byeong-Il Ahn
Additional contact information
Jung Hun Han: Korea Rural Economic Institute, Naju, Korea
Byeong-Il Ahn: Department of Food and Resource Economics, Korea University, Seoul, Korea

Agricultural Economics, 2015, vol. 61, issue 12, 552-563

Abstract: In order to derive the evidence of the asymmetric price transmission, we employed the threshold estimation for the price relationship between the imported wheat and the wheat flour prices. We estimated the exact level of threshold points of the imported wheat price that have different impacts on the Korean wheat flour price. Our empirical estimations proved the main hypothesis of this study, namely, that the impact of input price on output price is stronger at higher levels of the input price. In the sub-sample, which includes data from January 1993 to January 2008, the price transmission effect from the imported wheat to the domestic wheat flour in the Regime 3, in which wheat prices are the highest among our three regimes, is larger than that in the Regime 2. In the whole sample, which includes data from January 1993 to March 2014, the price transmission effect in the Regime 3 is larger than that in the Regime 2, and that of the Regime 2 is larger than that of the Regime 1.

Keywords: asymmetric price transmission; price equation; reduced form; threshold estimation (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://agricecon.agriculturejournals.cz/doi/10.17221/47/2015-AGRICECON.html (text/html)
http://agricecon.agriculturejournals.cz/doi/10.17221/47/2015-AGRICECON.pdf (application/pdf)
free of charge

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:caa:jnlage:v:61:y:2015:i:12:id:47-2015-agricecon

DOI: 10.17221/47/2015-AGRICECON

Access Statistics for this article

Agricultural Economics is currently edited by Ing. Zdeňka Náglová, Ph.D.

More articles in Agricultural Economics from Czech Academy of Agricultural Sciences
Bibliographic data for series maintained by Ivo Andrle ().