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Abstract
Recently a wide instability of food prices has been observed in world and European
agricultural and food markets. Both media and policy makers have dealt with the
unsatisfactory patterns of marketing margins and price transmission along the food chain
which may bring about distributive issues and affect inflationary trends. Although price
transmission and margins dynamics have attracted so much interest at the policy level,
few Italian studies deal with this topic.
Our aim is to provide a first analysis of the price transmission mechanism in three
Italian agri-food chains (lamb, pork and pasta), within a structural change framework.
Results show that structural breaks in the price transmission mechanism are an issue
in the food chain of pasta and pork with the regime change arising in occasion of the
price bubble of 2007-2008.