Price Transmission, Threshold Behavior, and Asymmetric Adjustment in the U.S. Pork Sector

By Barry K. Goodwin, Daniel C. Harper. Journal of Agricultural and Applied Economics, 2000

188 citations recorded by the source corpus.

Abstract The US pork sector has experienced many significant structural changes in recent years. Such changes may have influenced price dynamics and transmission of shocks through marketing channels. We investigate linkages among farm, wholesale, and retail markets using weekly price data for the period covering 1987 through 1998. Our analysis uses a threshold cointegration model that permits asymmetric adjustment to positive and negative price shocks. Our results reveal important asymmetries. Our results are consistent with existing literature which has determined that price adjustment patterns are unidirectional and that information tends to flow from farm, to wholesale, to retail markets.

Subfields: Economics and Econometrics, General Agricultural and Biological Sciences

View Paper: https://www.semanticscholar.org/paper/7e0a81ba230c311dc4a3ff16d81fb086008b1f49

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In Economics and Econometrics

  1. B. Hansen
  2. S. Cramon-Taubadel
  3. Jochen Meyer
  4. Xinyu Zhang
  5. Donghyeon Kim
  6. Liangjun Su
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In General Agricultural and Biological Sciences

  1. B. Hansen
  2. S. Cramon-Taubadel
  3. Jochen Meyer

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