Mean Spillover Effects in Agricultural Prices: The Case of Greece
Agribusiness: An International Journal Vol. 19, No. 4, 2003
13 Pages Posted: 24 Jun 2008
Date Written: June, 24 2008
This article investigates the behavior of agricultural input prices, agricultural output prices, and retail food prices using the cointegration0error-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.
JEL Classification: Q110, Q130
Suggested Citation: Suggested Citation