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Asymmetry in Price Transmission in Agricultural Markets
Author(s) -
McLaren Alain
Publication year - 2015
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/rode.12151
Subject(s) - economics , asymmetry , agriculture , transmission (telecommunications) , agricultural economics , monetary economics , telecommunications , physics , geography , quantum mechanics , archaeology , computer science
Abstract This paper explores the asymmetries in price transmission from international to local markets. We expect the presence of large intermediaries in agricultural markets to lead to a stronger price transmission when international prices decline than when they rise. The empirical evidence confirms the presence of asymmetric price transmission consistent with the presence of large intermediaries with monopsony power.