Mean spillover effects in agricultural prices: The case of Greece

✍ Scribed by Nicholas Apergis; Anthony Rezitis

• Publisher: John Wiley and Sons
• Year: 2003
• Tongue: English
• Weight: 226 KB
• Volume: 19
• Category: Article
• ISSN: 0742-4477
• DOI: 10.1002/agr.10071

✦ Synopsis

Abstract

This article investigates the behavior of agricultural input prices, agricultural output prices, and retail food prices using the cointegration/error–correction methodology. The findings support “cost push” and “demand pull” theories, because disequilibrium at the input level is transmitted to the retail level, and vice versa, through the output level. The estimated error–correction coefficients and price responses indicate, first, imperfect price transmission among agricultural input, output, and retail food prices, and second, that agricultural output prices are more flexible than agricultural input and retail food prices. [EconLit citations: Q110; Q130]. © 2003 Wiley Periodicals, Inc. Agribusiness 19: 425–437, 2003.