Animal disease outbreaks and food market price dynamics: Evidence from regime-dependent modelling and connected scatterplots

Alejandro Acosta, Carlos Barrantes, R. Ihle

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

The economic impacts of animal disease outbreaks have been widely discussed in the literature. Most authors have centred their attention on estimating the direct costs. Recent studies have shown that the indirect economic effects might lead to equal or even higher welfare losses. This study aims to contribute to this field of research by assessing the effect of an animal disease outbreak on food market price dynamics in Mexico, accounting for the potential effect of an antitrust intervention. We employ a regime‐dependent vector error correction model and a connected scatterplot analysis. The results show that both the outbreak and the antitrust intervention caused structural breaks in food market price dynamics between producers and consumers, reflected in an increase in the absolute component of the marketing margin, with serious food security implications.
Original languageEnglish
Pages (from-to)960-976
Number of pages17
JournalThe Australian Journal of Agricultural and Resource Economics
Volume64
Issue number3
Early online date27 Jul 2020
DOIs
Publication statusPublished - 2020

Keywords

  • antitrust intervention
  • highly pathogenic avian influenza
  • market integration
  • price transmission

Fingerprint Dive into the research topics of 'Animal disease outbreaks and food market price dynamics: Evidence from regime-dependent modelling and connected scatterplots'. Together they form a unique fingerprint.

  • Cite this