 Hedonic Pricing of Components and Cointegration Relationships: A Dynamic Analysis of Dairy Product PricesJean-Paul Chavas () and Kwansoo Kim No 201572, Working Papers from University of Wisconsin-Madison, Department of Agricultural and Applied Economics, Food System Research Group Abstract: The paper investigates the implications of hedonic pricing of components, with an application to the dynamics of dairy product prices. A conceptual model of hedonic pricing is developed under a Leontief technology, showing how commodity prices reflect the underlying value of their components. Implications for the existence of cointegration relationships among commodity prices are derived. An application to the pricing and dynamics of selected U.S. dairy commodities is presented. It provides evidence on the role of component valuation in the dynamics of dairy commodity prices in the short run as well as in the long run. Distinguishing between market regime and government regime (when the government price support is active), the analysis finds significant differences in dairy price dynamics between the two regimes. Keywords: Food Consumption/Nutrition/Food Safety; Research and Development/Tech Change/Emerging Technologies; Research Methods/Statistical Methods (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ags:uwfswp:201572 Access Statistics for this paper More papers in Working Papers from University of Wisconsin-Madison, Department of Agricultural and Applied Economics, Food System Research Group Contact information at EDIRC. |
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