Is Pricing to Market Behavior a Long-Run Phenomenon? A Non-Stationary Panel Analysis

Empirica ◽  
2004 ◽  
Vol 31 (1) ◽  
pp. 55-67 ◽  
Author(s):  
Abdulnasser Hatemi-J ◽  
Manuchehr Irandoust
Keyword(s):  
Panel Analysis ◽  
Market Behavior ◽  
Pricing To Market ◽  
Long Run

Price response of herd off-take under market liberalization in a developing cattle sector: panel analysis applied to Kenya's ranching

2009 ◽  
Vol 14 (2) ◽  
pp. 263-280 ◽  
Author(s):  
DICKSON M. NYARIKI
Keyword(s):  
Economic Policy ◽  
Statistical Power ◽  
Climatic Factors ◽  
Price Change ◽  
Panel Analysis ◽  
Classical Dynamic ◽  
Price Response ◽  
Long Run ◽  
Run Off ◽  
Supply Model

ABSTRACTThe influence of price, in view of macro-economic policy change and a set of other factors, on herd off-take rates from ranches in Kenya over a period of 17 years was assessed. An AR(1) equation, based on Nerlove's classical dynamic supply model, was derived and fitted to panel data using the Cochrane–Orcutt procedure. Pooling of data was done to circumvent data insufficiency, thereby improving the statistical power of the analysis. Results indicate that price change has had a significant effect on ranch herd off-take, and climatic factors also account for long-run off-take levels.

Evidence of the Crude Oil Use Efficiency for the Four BRIC Countries: A Panel Analysis

2014 ◽  
Vol 1030-1032 ◽  
pp. 2561-2565
Author(s):  
Gao Lu Zou
Keyword(s):  
Crude Oil ◽  
Panel Cointegration ◽  
Panel Analysis ◽  
Oil Consumption ◽  
Bric Countries ◽  
Long Run ◽  
Use Efficiency ◽  
The Common ◽  
Low Efficiency ◽  
Consumption Efficiency

Crude Oil consumption for every unit of GDP output is a significant indicator for oil use efficiency. This study aims to investigate the long-run relationship between energy consumption efficiency across the four BRIC countries. We tested for panel unit root and panel cointegration. Oil consumption was of low efficiency in India. The cointegration suggests the common inefficiency of oil use. We may find out some common or similar determinants improving the oil use efficiency in the rapidly growing but heavy oil import-dependent countries.

Modeling Foreign Exchange Rate Pass-Through using the Exponential GARCH

2014 ◽  
pp. 139-190
Author(s):  
Baoying Lai ◽  
Nathan Lael Joseph
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange ◽  
Foreign Exchange Rate ◽  
Pricing To Market ◽  
Export Prices ◽  
Long Run ◽  
Short Run ◽  
Pass Through ◽  
Exchange Rate Pass Through ◽  
Meat Sector

In this chapter, the authors use an EGARCH-ECM to estimate the pass-through effects of Foreign Exchange (FX) rate changes and changes in producers’ prices for 20 U.K. export sectors. The long-run adjustments of export prices to FX rate changes and changes in producers’ prices are within the range of –1.02% (for the Textiles sector) and –17.22% (for the Meat sector). The contemporaneous Pricing-To-Market (PTM) coefficients are within the range of –72.84% (for the Fuels sector) and –8.05% (for the Textiles sector). Short-run FX rate pass-through is not complete even after several months. Rolling EGARCH-ECMs show that the short and long-run effects of changes in FX rate and producers’ prices vary substantially, as do asymmetry and volatility estimates before equilibrium is achieved.

Changes in Import Pricing Behaviour: Evidence for Germany

2011 ◽  
Vol 231 (4) ◽  
Author(s):  
Kerstin Stahn
Keyword(s):  
Import Price ◽  
Commodity Prices ◽  
Pricing To Market ◽  
Product Categories ◽  
Individual Product ◽  
Long Run ◽  
Consumer Prices ◽  
Pass Through ◽  
The Individual ◽  
The Impact

SummarySince changes in import prices feed into consumer prices and thus might affect monetary policy decisions, policymakers need to establish whether or not German importers’ long-run pricing behaviour has changed. Of particular interest are any shifts in the importance of cost pass-through and pricing-to-market for import pricing in Germany that may have ocurred since the 1990s. We analyse pricing in single equations for 11 product categories because the factors influencing the pricing behaviour, eg competitive pressure,may well have developed differently on the individual product markets. The Saikkonen (1991) approach is applied to test the import price levels for changes in the impact of their determinants. After aggregating the findings for the individual product categories, we find that, on the whole, pricing-to-market has increased, whereas cost pass-through via foreign costs and exchange rates is lower, but not via commodity prices.

Lost in Transit: Product Replacement Bias and Pricing to Market

2012 ◽  
Vol 102 (7) ◽  
pp. 3277-3316 ◽  
Author(s):  
Emi Nakamura ◽  
Jón Steinsson
Keyword(s):  
Price Change ◽  
Price Adjustment ◽  
Price Changes ◽  
Pricing To Market ◽  
Long Run ◽  
Price Indexes ◽  
Product Replacement ◽  
Pass Through ◽  
Exchange Rate Pass Through ◽  
In Transit

In the microdata underlying US trade price indexes, 40 percent of products are replaced before a single price change is observed and 70 percent are replaced after two price changes or fewer. A price index that focuses on price changes for identical items may, therefore, miss an important component of price adjustment occurring at the time of product replacements. We provide a model of this “product replacement bias” and quantify its importance using US data. Accounting for product replacement bias, long-run exchange rate “pass-through” is substantially higher than conventional estimates suggest, and the terms of trade are substantially more volatile. (JEL F14, F31)

scholarly journals A dynamic panel analysis using SIPRI’s extended military expenditure data: The case of Middle Power nations

2016 ◽  
Vol 11 (2) ◽  
Author(s):  
Mohamed Douch ◽  
Binyam Solomon
Keyword(s):  
Nuclear Power ◽  
Income Elasticity ◽  
Military Expenditure ◽  
Panel Analysis ◽  
Dynamic Panel ◽  
Middle Power ◽  
Distributed Lag ◽  
Long Run ◽  
Dynamic Panel Analysis ◽  
Middle Powers

This study employs SIPRI’s extended military expenditure dataset to estimate a dynamic panel analysis of Middle Powers’ defense posture. The dynamic approach, particularly the Auto Regressive Distributed Lag (ARDL) approach, permits simultaneous, but separate, assessment of short- and long-run effects of a particular variable on military expenditure. We verify the robustness of earlier findings on Middle Power nations’ defense posture. In particular, their military expenditure tends to an income elasticity of greater than one indicating that military power is, at least in part, a status good. In addition, Middle Powers react to threat variables that proxy global instability, such as nuclear power proliferation, and they use foreign aid as a complementary policy tool. Competing demands for funds lead to significant tradeoffs between military and nonmilitary government spending.

EXCHANGE RATE PASS-THROUGH FOR SELECTED ASIAN ECONOMIES

2001 ◽  
Vol 46 (02) ◽  
pp. 247-273 ◽  
Author(s):  
MUN-HENG TOH ◽  
HWEI-JING HO
Keyword(s):  
Exchange Rate ◽  
A Priori ◽  
Flexible Exchange Rate ◽  
Pricing To Market ◽  
Long Run ◽  
Short Run ◽  
Pass Through ◽  
Export Industries ◽  
Exchange Rate Pass Through ◽  
Error Correction Modeling

This paper investigates the degree of exchange rate pass-through for the selected Asian countries namely Malaysia, Thailand, Taiwan, and Singapore. Unlike past studies, this paper focuses on small open economies and includes exports of primary commodities in the investigation. We utilize cointegration techniques based on Engle and Granger (1987) and Johansen and Juselius (1990), and error correction modeling, to provide a more robust and rigorous investigation of the long run and short run pass-through of exchange rates. It is found that, in general, the degree of pass-through is high, although there is a small extent of pricing to market found for all countries. For Malaysia, the degree of pricing to market found suggests that there is intense competition in the export industries. In the case of Thailand, there is almost complete pass-through and this conforms to our a priori expectations. In the case of Singapore and Taiwan, we detect a higher degree of pass-through compared to past studies. For a country, the high degree of pass-through will support the adoption of more flexible exchange rate oriented monetary policies, and for firms it will reveal the limits of their price setting behavior amidst international competition.

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