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Marketing Order Impacts on Farm‐Retail Price Spreads: The Suspension of Prorates on California‐Arizona Navel Oranges
Author(s) -
Thompson Gary D.,
Lyon Charles C.
Publication year - 1989
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 - 10.2307/1242020
Subject(s) - atlanta , pound (networking) , economics , navel , navel orange , geography , horticulture , archaeology , computer science , metropolitan area , world wide web , medicine , biology , anatomy
Abstract The 1985 suspension of the prorate on California‐Arizona navel oranges decreased FOB retail price spreads in Atlanta and San Francisco by about 1.3 cents per pound. Four reduced‐form models of price spreads were estimated as seemingly unrelated regressions for price spreads in Atlanta, Dallas, and San Francisco. Nested and non‐nested hypothesis testing procedures indicated a markup model as the most plausible one for explaining short‐run changes in price spreads.