THE NATURE OF SELECTED PRICE TRANSMISSIONS IN THE AGRI-FOOD CHAIN AND THEIR CONSEQUENCES

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60460709%3A41110%2F06%3A18636" target="_blank" >RIV/60460709:41110/06:18636 - isvavai.cz</a>

Result on the web

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DOI - Digital Object Identifier

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Result language

angličtina

Original language name

THE NATURE OF SELECTED PRICE TRANSMISSIONS IN THE AGRI-FOOD CHAIN AND THEIR CONSEQUENCES

Original language description

The paper outlines the theoretical framework for analyzing the market structure in vertically-related markets. The VECM (Vector error correction model) is employed to analyze the relations between the agricultural (farm) price and the wholesale price inthe vertical sector for pigs, broilers and wheat (Bohemian flour). The results suggest that the processing stage for pigs, and probably for broilers, may exercise oligopsonistic power. The markets are pushed into an equilibrium state, whereby it takes approximately 12 months to reach an equilibrium relationship after unitary innovation (shock). The price transmissions do not seem to change significantly post-EU enlargement. Moreover, the results imply that Czech farmers? degree of competitiveness is reduced. Agricultural policy may diminish the negative effects of the asymmetric relations in price transmissions in the short-run. However, in the long run these effects may deteriorate.

Czech name

Povaha vybraných cenových transmisí v zemědělsko-potravinářské vertikále a její souvislosti

Czech description

The paper outlines the theoretical framework for analyzing the market structure in vertically-related markets. The VECM (Vector error correction model) is employed to analyze the relations between the agricultural (farm) price and the wholesale price inthe vertical sector for pigs, broilers and wheat (Bohemian flour). The results suggest that the processing stage for pigs, and probably for broilers, may exercise oligopsonistic power. The markets are pushed into an equilibrium state, whereby it takes approximately 12 months to reach an equilibrium relationship after unitary innovation (shock). The price transmissions do not seem to change significantly post-EU enlargement. Moreover, the results imply that Czech farmers? degree of competitiveness is reduced. Agricultural policy may diminish the negative effects of the asymmetric relations in price transmissions in the short-run. However, in the long run these effects may deteriorate.

Type

J_x - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)

CEP classification

GA - Agricultural economics

OECD FORD branch

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Project

<a href="/en/project/GP402%2F06%2FP364" target="_blank" >GP402/06/P364: Forecasting and simulation models of credit rationing impact on economic equilibrium in agri-food chain</a><br>

Continuities

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year

2006

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Studies on the Agricultural and Food Sector in Central and Eastern Europe iiinnn Ceeennntttrrraaalll aaannnddd Eaaasssttteeerrrnnn Euuurrrooopppe

ISSN

1436-221X

e-ISSN

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Volume of the periodical

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Issue of the periodical within the volume

1

Country of publishing house

DE - GERMANY

Number of pages

19

Pages from-to

430-448

UT code for WoS article

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EID of the result in the Scopus database

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