Impacts of COVID‐19 and Price Transmission in U.S. Meat Markets

An equilibrium displacement model of the U.S. meat markets is used to measure the potential impacts of promotion investment, differentiating meats by types and by supply source, taking into account the U.S. participation in global meat markets, and considering imperfect competition in the meat industry. The increase in U.S. producer welfare resulting from a 10 percent increase in promotion ranges from -$1.29 million to $2.60 million for U.S. beef producers and from -$0.96 million to $1.67 million for U.S. pork producers, depending primarily on the advertising elasticity used.

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The Turkish wheat market: spatial price transmission and the impact of transaction costs

Agribusiness ◽

10.1002/agr.20257 ◽

2010 ◽

Vol 27 (2) ◽

pp. 147-161 ◽

Cited By ~ 8

Author(s):

Stephan Brosig ◽

Thomas Glauben ◽

Linde Götz ◽

Enno-Burghard Weitzel ◽

Ahmet Bayaner

Keyword(s):

Transaction Costs ◽

Price Transmission ◽

Wheat Market ◽

Spatial Price ◽

The Impact

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The world market for soybeans: price transmission into Brazil and effects from the timing of crop and trade

Nova Economia ◽

10.1590/s0103-63512007000200002 ◽

2007 ◽

Vol 17 (2) ◽

pp. 241-270 ◽

Cited By ~ 8

Author(s):

Mario A. Margarido ◽

Frederico A. Turolla ◽

Carlos R. F. Bueno

Keyword(s):

United States ◽

Forecast Error ◽

The United States ◽

World Market ◽

Price Transmission ◽

Long Run ◽

Cointegration Tests ◽

The World ◽

The Law ◽

The One

This paper investigates the price transmission in the world market for soybeans using time series econometrics models. The theoretical model developed by Mundlack and Larson (1992) is based on the Law of the One Price, which assumes price equalization across all local markets in the long run and allows for deviations in the short run. The international market was characterized by three relevant soybean prices: Rotterdam Port, Argentina and the United States. The paper estimates the elasticity of transmission of these prices into soybean prices in Brazil. There were carried causality and cointegration tests in order to identify whether there is significant long-term relationship among these variables. There was also calculated the impulse-response function and forecast error variance decomposition to analyze the transmission of variations in the international prices over Brazilian prices. An exogeneity test was also carried out so as to check whether the variables respond to short term deviations from equilibrium values. Results validated the Law of the One Price in the long run. In line with many studies, this paper showed that Brazil and Argentina can be seen as price takers as long as the speed of their adjustment to shocks is faster than in the United States, the latter being a price maker.

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