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Price transmission along the food supply chain in Slovakia

Jan Pokrivcak and Miroslava Rajcaniova

Post-Communist Economies, 2014, vol. 26, issue 4, 555-568

Abstract: This article examines the price relationship along the food supply chain in Slovakia. We analyse a long-run relationship between farm and retail level in the vertical chain of milk, beef, pork, chicken, potatoes and apples. A cointegration approach is used to study the long-run relationship. We test for the existence of a structural break in the time series data (Gregory Hansen test) in the period observed and allow for the existence of a non-linear relationship between prices at various levels of the vertical chain by using threshold autoregressive models. We find evidence of asymmetry in price transmission along the food supply chain.

Date: 2014
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DOI: 10.1080/14631377.2014.937111

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