FSWP 2002 - 4 Price Dynamics in a Vertical Sector : The Case of Butter by
نویسندگان
چکیده
We develop a reduced-form model of price transmission in a vertical sector, allowing for refined asymmetric, contemporaneous and lagged, own and cross price effects. The model is used to analyze wholesale-retail price dynamics in the US butter market. The analysis provides strong evidence of asymmetric price transmissions. It documents the complex nature of nonlinear price dynamics in a vertical sector and its implications for the distribution of future prices. It finds evidence that the asymmetric response to shocks is stronger in the short run for retail prices, and in the longer run for wholesale prices.
منابع مشابه
Price Dynamics in a Vertical Sector: The Case of Butter by
We develop a reduced-form model of price transmission in a vertical sector, allowing for refined asymmetric, contemporaneous and lagged, own and cross price effects under time-varying volatility. The model is used to investigate wholesale-retail price dynamics in the US butter market. The analysis documents the nature of nonlinear price dynamics in a vertical sector, with implications for price...
متن کاملOil Price Shocks and Economic Fluctuations in Iran as a Small Open Oil Exporting Economy
Oil price shocks are the major source of economic instability in oil exporting developing countries, including Iran. In this paper a Multi Sector Dynamic Stochastic General Equilibrium model, with emphasis on optimization of oil sector as a producing sector is designed. Furthermore, an optimizing import sector is introduced into the model by considering the price rigidity in imported goods as a...
متن کاملThe dynamics of substitution tensions between fossil energy carriers for gas consumption in Iran's transportation sector on the horizon of 2025
The present paper explains the dynamics of substitution tensions between fossil energy carriers for gas consumption in the transportation sector of Iran in the horizon of 2025 using seasonal space model and Kalman filter approach for the years 2006-2019 in the form of quarterly data. Based on the results; Price elasticity and revenue elasticity of gasoline and gas oil are -0.20, -0.15, 0.27 and...
متن کاملEstimation of Water Demand of Agriculture Sector by Water-Yield Function (Case Study: Sistan Province)
In this study, yield-water and profit function was used to obtain water demand function in agriculture sector. The results showed that the ratio of actual to potential Evapotranspiration had positive, significant effecton the ratio of actual to potential yield for wheat and barley. Also, square ratio of actual to potential Evapotranspiration had negative, significant relationship. After estimat...
متن کاملMarket Based Analysis of Natural Gas and Electricity Export via System Dynamics
By increasing the extraction of natural gas, its role in the restructured power systems is being expanded, due to its lower pollution. Iran has the second largest reserves of natural gas in the world and exports it to different countries. This paper represents long run analysis of natural gas export from Iran to Turkey as a case study, considering direct transfer and exporting via the power mar...
متن کامل