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Asymmetry in Retail, Wholesale, and Shipping Point Pricing for Fresh Vegetables
Author(s) -
Ward Ronald W.
Publication year - 1982
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1241124
Subject(s) - point (geometry) , linkage (software) , wholesale price index , point of sale , granger causality , asymmetry , economics , commerce , econometrics , business , monetary economics , price level , mid price , mathematics , chemistry , biochemistry , geometry , world wide web , computer science , gene , physics , quantum mechanics
The linkage among retail, wholesale, and shipping point prices for a select group of fresh vegetables is measured using Wolffram's asymmetry model. Procedures for dealing with discontinuous time series are shown, and Granger's causality test is used to show the direction of the price linkage. Wholesale prices are shown to lead both retail and shipping point prices. Asymmetry in the retail‐wholesale response indicates that wholesale price decreases are reflected at the retail more so than are wholesale price increases. Wholesale price decreases are more fully passed through to the shipping point relative to wholesale increases.