EconPapers    
Economics at your fingertips  
 

Asymmetric Response of Retail Milk Prices in the Northeast Revisited

Daniel A. Lass

No 149026, Research Reports from University of Connecticut, Food Marketing Policy Center

Abstract: Retail milk price responses to farm price changes were analyzed for Boston, Massachusetts, and Hartford, Connecticut. Prior research concluded asymmetries did not exist in the response of retail fluid milk prices to changes in farm prices. This study finds transmission rates were greater for the Compact period (100 – 120 percent) than the Pre-Compact period (66 – 88 percent). Short-run asymmetries were apparent. Retail prices responded rapidly to farm price increases, but slowly to farm price decreases. This study also finds evidence of long-run asymmetry. When equivalent farm price increases and decreases occur, retail prices do not return to the same levels that were observed before the price changes. Such long-run asymmetry was not observed in prior empirical studies of retail prices in the Northeast.

Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers)
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13) Track citations by RSS feed

Downloads: (external link)
http://ageconsearch.umn.edu/record/149026/files/rr92.pdf (application/pdf)

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:ags:uconnr:149026

DOI: 10.22004/ag.econ.149026

Access Statistics for this paper

More papers in Research Reports from University of Connecticut, Food Marketing Policy Center Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().

 
Page updated 2019-10-12
Handle: RePEc:ags:uconnr:149026