Korean Journal of Organic Agriculture (한국유기농업학회지)

Korean Association of Organic Agriculture (한국유기농업학회)
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Causality and Asymmetric Price Transmission in the Distribution Channel of the Tomato Market in Korea

토마토의 유통단계 간 인과성 및 비대칭적 가격 조정 연구

  • Received : 2018.10.19
  • Accepted : 2018.11.19
  • Published : 2018.11.30
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Abstract

The purpose of this study is to explore the dynamic properties of causality and asymmetric price transmission in the distributional channel of the tomato market in Korea. Using the wholesale and retail price series of the tomato market, we obtain the following results. First, the price transmission mechanism reveals the causal relationship channeling from the wholesale price to the retail price. Second, we find an asymmetric price transmission from the analysis using the threshold partial adjustment model. The retail price responds strongly when the wholesale price increases. On the other hand, the retail price shows sluggish adjustment when the wholesale price decreases.

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References

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