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Price and quantity adjustment in a dual character market The case of the Greek poultry sector
Author(s) -
Alogoskoufis George,
Baltas Nicholas
Publication year - 1991
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/j.1574-0862.1991.tb00172.x
Subject(s) - economics , econometrics , supply and demand , dual (grammatical number) , microeconomics , perfect competition , set (abstract data type) , character (mathematics) , monetary economics , mathematics , art , geometry , literature , computer science , programming language
In this paper we set up, estimate and test a short‐run model for the poultry sector in Greece. The model allows for the simultaneous existence of a monopolistically competitive and a competitive segment, and determines producer and consumer prices, and the quantity consumed. We provide evidence on steady‐state parameters such as demand and supply elasticities, as well as on speeds of adjustment of prices and quantities. The evidence suggests that adjustment is very rapid, although quantities appear to be adjusting more quickly than prices. The model is used to examine the dynamics of adjustment to demand and supply‐side disturbances.