Price and Volatility Transmission and Market Power in the German Fresh Pork Supply Chain

Research output: Contribution to journalArticleAcademicpeer-review

1 Citation (Scopus)

Abstract

We investigate the relationship between the transmission of price volatility and market power in the German fresh pork supply chain. We use a theoretical model underpinning this relationship followed by an empirical application that uses monthly farm, slaughterhouse and retail pork price data for the period 2000–2011. We examine both the relationships of market power with price level transmission and price volatility transmission in the chain. We use a vector error correction model and least squares regressions to analyse price transmission and price volatility transmissions, respectively. Results show that retail market power limited both types of transmissions. Competition inducing policy measures coupled with measures that support price risk management initiatives of chain actors are suggested.

Original languageEnglish
Pages (from-to)861-880
JournalJournal of Agricultural Economics
Volume68
Issue number3
DOIs
Publication statusPublished - 2017

Fingerprint

market power
Volatilization
supply chain
pork
agricultural subsidies
retail marketing
risk management
Abattoirs
funding
slaughterhouses
Risk Management
Red Meat
Volatility transmission
Price volatility
Pork
Price transmission
Market power
Supply chain
least squares
Least-Squares Analysis

Keywords

  • Food supply chain
  • Germany
  • market power
  • price transmission
  • price volatility transmission

Cite this

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title = "Price and Volatility Transmission and Market Power in the German Fresh Pork Supply Chain",
abstract = "We investigate the relationship between the transmission of price volatility and market power in the German fresh pork supply chain. We use a theoretical model underpinning this relationship followed by an empirical application that uses monthly farm, slaughterhouse and retail pork price data for the period 2000–2011. We examine both the relationships of market power with price level transmission and price volatility transmission in the chain. We use a vector error correction model and least squares regressions to analyse price transmission and price volatility transmissions, respectively. Results show that retail market power limited both types of transmissions. Competition inducing policy measures coupled with measures that support price risk management initiatives of chain actors are suggested.",
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author = "Assefa, {Tsion Taye} and Meuwissen, {Miranda P.M.} and Koos Gardebroek and {Oude Lansink}, {Alfons G.J.M.}",
year = "2017",
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Price and Volatility Transmission and Market Power in the German Fresh Pork Supply Chain. / Assefa, Tsion Taye; Meuwissen, Miranda P.M.; Gardebroek, Koos; Oude Lansink, Alfons G.J.M.

In: Journal of Agricultural Economics, Vol. 68, No. 3, 2017, p. 861-880.

Research output: Contribution to journalArticleAcademicpeer-review

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T1 - Price and Volatility Transmission and Market Power in the German Fresh Pork Supply Chain

AU - Assefa, Tsion Taye

AU - Meuwissen, Miranda P.M.

AU - Gardebroek, Koos

AU - Oude Lansink, Alfons G.J.M.

PY - 2017

Y1 - 2017

N2 - We investigate the relationship between the transmission of price volatility and market power in the German fresh pork supply chain. We use a theoretical model underpinning this relationship followed by an empirical application that uses monthly farm, slaughterhouse and retail pork price data for the period 2000–2011. We examine both the relationships of market power with price level transmission and price volatility transmission in the chain. We use a vector error correction model and least squares regressions to analyse price transmission and price volatility transmissions, respectively. Results show that retail market power limited both types of transmissions. Competition inducing policy measures coupled with measures that support price risk management initiatives of chain actors are suggested.

AB - We investigate the relationship between the transmission of price volatility and market power in the German fresh pork supply chain. We use a theoretical model underpinning this relationship followed by an empirical application that uses monthly farm, slaughterhouse and retail pork price data for the period 2000–2011. We examine both the relationships of market power with price level transmission and price volatility transmission in the chain. We use a vector error correction model and least squares regressions to analyse price transmission and price volatility transmissions, respectively. Results show that retail market power limited both types of transmissions. Competition inducing policy measures coupled with measures that support price risk management initiatives of chain actors are suggested.

KW - Food supply chain

KW - Germany

KW - market power

KW - price transmission

KW - price volatility transmission

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DO - 10.1111/1477-9552.12220

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