Spatial Price Dynamics in U.S. Regional Broiler Markets

The U.S. broiler industry is highly vertically integrated and increasingly concentrated in the number of firms and production areas. These structural elements could have implications for performance and the functioning of the law of one price (LOP) across regions. This article investigates this using data on four regional markets. Cointegration results indicate that regional prices are spatially linked in the long run, but pairwise cointegration was not found, suggesting that the LOP does not hold. Causality tests confirm the relative importance of price shocks from the South. This finding is reflective of price coordination by firms with production in multiple regions.


Issue Date:
2007-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/6324
Published in:
Journal of Agricultural and Applied Economics, Volume 39, Number 3
Page range:
447-456
Total Pages:
10
JEL Codes:
Q13; D43; C22




 Record created 2017-04-01, last modified 2017-04-28

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