Do Inventories Have an Impact on Price Transmission? Evidence From the Canadian Chicken Industry

Abbassi, Abdessalem; Tamini, Lota D.; Gervais, Jean‐Philippe

doi:10.1002/agr.21292

Cited by 7 publications

(5 citation statements)

References 49 publications

(62 reference statements)

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“…Using a theoretical model, Reagan and Weitzman (1982) suggested that inventory management strategies of market actors could lead to APT. Such a relationship has been empirically confirmed for the Canadian chicken industry (Abbassi et al, 2012) and American beef industry (Surathkal and Chung, 2019).…”

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confidence: 71%

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Vertical price transmission in the Nigerian cowpea market

Chien

Sakurai

et al. 2019

BFJ

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Purpose The purpose of this paper is to examine the asymmetry of vertical price transmission (i.e. from the wholesale to the retail market) in the Nigerian cowpea market and identify its causes. Design/methodology/approach The authors surveyed 19 markets in Kano and Ibadan from 2012 to 2015. The autoregressive distributed lag model and asymmetric error correction model were adopted to test the asymmetry of vertical price transmission. Findings Results suggest that price transmission in Kano is symmetric, but it is asymmetric in Ibadan. This distinction is caused by the differences in the market structure (in terms of competition level, inventory period and transaction cost) of these cities. Originality/value This is the first study to empirically investigate the vertical price transmission in two Nigerian cowpea markets. It is also the first to reveal the role of the market structure in price transmission through a comparison of two markets. The findings provide policy implications and will help create a more efficient food market in Nigeria.

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confidence: 71%

“…5.2.2 Inventory behavior. Inventory behavior also plays a role in APT (Roberts et al, 1994;Meyer and Cramon-Taubadel, 2004;Abbassi et al, 2012). According to our survey result, the distribution of the inventory period in Kano is concentrated in the lower left side of Figure 5 compared with Ibadan, implying that the inventory period in Kano is shorter.…”

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confidence: 75%

Vertical price transmission in the Nigerian cowpea market

Chien

Sakurai

et al. 2019

BFJ

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“…Several recent agricultural commodity price transmission and market integration studies have focused on price relationships among markets for which trade regularly occurs (see the methodological development and worldwide empirical evidence of agricultural commodity price transmission in Brosig et al (2011), Abbassi et al (2012), Tekgüç (2013), Acosta et al (2014), Santeramo (2015), Cacchiarelli et al (2016), Tifaoui and Von Cramon‐Taubadel (2017), and Yu and Gould (2019)). Most of these studies have a similar underlying theoretical competitive spatial equilibrium framework, which is described thoroughly by Lence et al (2018).…”

Section: Literature Review: Price Transmission With Growing Conditions Variation and Sparse Market Informationmentioning

confidence: 99%

Price transmission with sparse market information: The case of United States chickpeas

Hatzenbuehler

Painter

2020

Agribusiness

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In this paper, supply‐related and price data for several chickpea importing regions and supply‐related data for export competitor countries were encompassed into price transmission models to determine whether such factors are helpful for explaining the United States chickpea price variation. Specifically, the models included satellite‐based normalized difference vegetation index, a measure of growing conditions, and area planted estimates for importing regions of the Indian subcontinent and the Mediterranean, and area planted estimates for exporting competitors, Australia and Canada. Results show that inclusion of supply‐related information improved goodness of fit statistics in all models relative to base models that only include prices, providing evidence that such information is important for explaining United States chickpea price changes. The models with the highest goodness of fit statistics were those that accounted for (1) deteriorating growing conditions in the Mediterranean region coinciding with declining area planted in Canada and (2) concurrently deteriorating growing conditions and declining area planted in the Indian subcontinent. [EconLit citations: Q11, Q17]

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“…Thus, the way the product prices are transmitted throughout the marketing chain is traditionally a matter of concern (Bor et al, 2014;Guillen and Artés, 2015;Hahn et al, 2016). However, this issue has frequently been addressed within its aspect of the determination of the transmission between farmer-retailer-consumer prices (Ben- Kaabia, et al, 2005;Abbassi et al, 2012;Rezitis, 2012) instead of examining the right price transmission from the feed to the livestock market (Brümmer et al, 2009;De and Zhou, 2015).…”

Section: Literaturementioning

confidence: 99%