Asymmetric Price Transmission along the European Food Supply Chain and the CAP Health Check: a Panel Vector Error Correction Approach

Q3 Business, Management and Accounting

Journal of Agricultural and Food Industrial Organization Pub Date : 2018-05-19 DOI:10.1515/jafio-2018-0002

A. Rezitis, Andreas Rokopanos

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引用次数: 2

Abstract

Abstract The 2003 CAP Reform commenced a liberal shift on the policies designed to protect farmers across Europe. The CAP Health Check of 2008 and the 2013 CAP Reform confirmed this change, adopting measures including the further decoupling of production, the abolishment of set-aside and the phasing-out of milk quotas. It is therefore expected that price transmission has been affected radically. This study investigates the price transmission mechanism along the European food supply chain, based on an asymmetric panel vector error correction model (VECM). Panel data on agricultural commodity (farmer), producer (processor) and consumer (retailer) prices from nineteen European countries are considered. The sample is split into two sub-periods, before and after the CAP Health Check, to examine how the price transmission mechanism has been affected. Cointegration is confirmed among the price series through the Pedroni tests and the long-run relationship is obtained with two estimation methods (i. e. fully modified OLS and dynamic OLS). Prior to the CAP Health Check, positive asymmetry is detected from farmer to processor and from processor to retailer. However, after the CAP Health Check price transmission becomes symmetric, thus suggesting that decreased support has resulted in a more efficient price transmission mechanism.

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欧洲食品供应链上的不对称价格传递和CAP健康检查：一种面板向量误差校正方法

2003年CAP改革开始了旨在保护整个欧洲农民的政策的自由转变。2008年的CAP健康检查和2013年的CAP改革确认了这一变化，采取了包括进一步脱钩生产、取消拨备和逐步取消牛奶配额在内的措施。因此，预计价格传导已受到根本影响。本研究基于非对称面板向量误差修正模型(VECM)，探讨了欧洲食品供应链上的价格传导机制。考虑了来自19个欧洲国家的农产品(农民)、生产者(加工商)和消费者(零售商)价格的面板数据。样本被分成两个子阶段，在CAP健康检查之前和之后，以检查价格传导机制是如何受到影响的。通过Pedroni检验确定了价格序列之间的协整关系，并采用两种估计方法(完全修改的OLS和动态OLS)。在CAP健康检查之前，从农民到加工商和从加工商到零售商检测到正不对称。然而，在CAP健康检查之后，价格传递变得对称，从而表明支持的减少导致了更有效的价格传递机制。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Agricultural and Food Industrial Organization Business, Management and Accounting-Business, Management and Accounting (all)

CiteScore

3.10

自引率

0.00%

发文量

期刊介绍： The Journal of Agricultural & Food Industrial Organization (JAFIO) is a unique forum for empirical and theoretical research in industrial organization with a special focus on agricultural and food industries worldwide. As concentration, industrialization, and globalization continue to reshape horizontal and vertical relationships within the food supply chain, agricultural economists are revising both their views of traditional markets as well as their tools of analysis. At the core of this revision are strategic interactions between principals and agents, strategic interdependence between rival firms, and strategic trade policy between competing nations, all in a setting plagued by incomplete and/or imperfect information structures. Add to that biotechnology, electronic commerce, as well as the shift in focus from raw agricultural commodities to branded products, and the conclusion is that a "new" agricultural economics is needed for an increasingly complex "new" agriculture.