Price Transmission Mechanisms among Disaggregated Processing Stages of Food: Demand-Pull or Cost-Push?

The recent concurrent surges of food and commodity prices renew the debate on the causal directions between producer and consumer prices. To address this issue, we utilize the stage of processing system incorporating retail stage beyond crude, intermediate, and finished processing stages of food and employ the method proposed by Toda and Yamamoto (1995) and Dolado and L├╝tkepohl (1996) of Granger causality tests. The overall results show that consistent with theory of derived demand, the demand-pull mechanisms coexist with the cost-push processes in 1985-2001. However, the upward cost-push pressures dominate the demand-pull mechanism through various transmission channels in 2002-2008.


Issue Date:
2009
Publication Type:
Conference Paper/ Presentation
DOI and Other Identifiers:
613622 (Other)
PURL Identifier:
http://purl.umn.edu/49332
Total Pages:
31




 Record created 2017-04-01, last modified 2017-08-22

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)