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Price Transmission in the European Tomatoes and Cauliflowers Sectors
Author(s) -
Santeramo Fabio Gaetano
Publication year - 2015
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/agr.21421
Subject(s) - economics , consumption (sociology) , econometrics , transaction cost , autoregressive model , transmission (telecommunications) , production (economics) , database transaction , agricultural economics , microeconomics , computer science , telecommunications , social science , sociology , programming language
The paper explores the characteristics of spatial price movements for fresh vegetables. The analysis is conducted on tomato and cauliflower prices collected on main production and consumption European markets. We estimate an asymmetric threshold autoregressive econometric model and provide estimates of transaction costs and speeds of price transmission among spatially separated markets. We assess the average elapsing time for the transmission of price shocks. In eight of ten cases we found that spatial price transmissions is not symmetric. Moreover in most cases we conclude that tomato and cauliflower markets are not efficient. We convey interesting policy considerations for the fresh vegetables sectors.