The Vertical Price Transmission in Pork Meat Production in the Czech Republic

Jitka Sirohi (), Zuzana Hloušková (), Klára Bartoňová, Karel Malec, Mansoor Maitah and Robert Koželský
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Jitka Sirohi: Department of Statistics, Faculty of Economics and Management, Czech University of Life Sciences in Prague, 165 00 Prague, Czech Republic
Zuzana Hloušková: Department of Statistics, Faculty of Economics and Management, Czech University of Life Sciences in Prague, 165 00 Prague, Czech Republic
Klára Bartoňová: Department of Management, Faculty of Economics and Management, Czech University of Life Sciences in Prague, 165 00 Prague, Czech Republic
Karel Malec: Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences in Prague, 165 00 Prague, Czech Republic
Mansoor Maitah: Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences in Prague, 165 00 Prague, Czech Republic
Robert Koželský: Department of Economics and Management, Faculty of Business and Law, Pan-European University, 110 00 Prague, Czech Republic

Agriculture, 2023, vol. 13, issue 6, 1-14

Abstract: The paper aims at vertical price transmission of the agri-food market in the Czech Republic. It is focused on the analysis of price transmission in pork meat by investigating the short-run and long-run relationships within the product and the speed of establishing the equilibrium relationship. For this purpose, there is employed specially VECM (Vector Error Correction Model), impulse-response analysis, and decomposition of variance of VECM, which show the system’s reaction. The applied approach considers five alternatives in the Johansen approach. The results suggest that there is an existence of the equilibrium relationship in vertical markets and this relationship is simultaneous and demand-driven. The impulse-response analyses show the response of the processing price to one standard deviation shock to the agriculture price from approximately 15–20 periods reaching long-run equilibrium. The response of the agriculture price to one standard deviation shock to the processing price reaching long-run equilibrium is also from approximately 15–20 periods.

Keywords: price transmission; pork meat; agro-food market; processing price; agriculture price; VECM; pork ham (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jagris:v:13:y:2023:i:6:p:1274-:d:1175646

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