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Asymmetry in beef, lamb and pork farm‐retail price transmission in Australia
Author(s) -
Griffith G.R.,
Piggott N.E.
Publication year - 1994
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.1574-0862.1994.tb00311.x
Subject(s) - levelling , economics , agricultural economics , market price , business , agricultural science , microeconomics , biology , cartography , geography
The hypothesis of asymmetry in price transmission within the Australian meat market is tested using monthly data for beef, lamb and pork prices at different market levels over the period 1971–1988. The results indicate that asymmetrical price response is a strategy used by beef and lamb retailers and wholesalers to adjust to changing input prices, but not by pork retailers and wholesalers. This difference is perhaps unexpected given the similarity in behaviours relating to price levelling in this market, the high cross‐price elasticities of demand between these meats, and the relatively greater degree of concentration in the pork market.