The Vertical Price Transmission in Pork Meat Production in the Czech Republic
The paper aims at vertical price transmission of the agri-food market in the Czech Republic. It is focused on the analysis of price transmission in pork meat by investigating the short-run and long-run relationships within the product and the speed of establishing the equilibrium relationship. For t...
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| Format: | Article |
| Language: | English |
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MDPI AG
2023-06-01
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| Series: | Agriculture |
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| Online Access: | https://www.mdpi.com/2077-0472/13/6/1274 |
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| author | Jitka Sirohi Zuzana Hloušková Klára Bartoňová Karel Malec Mansoor Maitah Robert Koželský |
| author_facet | Jitka Sirohi Zuzana Hloušková Klára Bartoňová Karel Malec Mansoor Maitah Robert Koželský |
| author_sort | Jitka Sirohi |
| collection | DOAJ |
| description | The paper aims at vertical price transmission of the agri-food market in the Czech Republic. It is focused on the analysis of price transmission in pork meat by investigating the short-run and long-run relationships within the product and the speed of establishing the equilibrium relationship. For this purpose, there is employed specially VECM (Vector Error Correction Model), impulse-response analysis, and decomposition of variance of VECM, which show the system’s reaction. The applied approach considers five alternatives in the Johansen approach. The results suggest that there is an existence of the equilibrium relationship in vertical markets and this relationship is simultaneous and demand-driven. The impulse-response analyses show the response of the processing price to one standard deviation shock to the agriculture price from approximately 15–20 periods reaching long-run equilibrium. The response of the agriculture price to one standard deviation shock to the processing price reaching long-run equilibrium is also from approximately 15–20 periods. |
| first_indexed | 2024-03-11T02:53:05Z |
| format | Article |
| id | doaj.art-ac0de176a85c475481920931fa47065e |
| institution | Directory Open Access Journal |
| issn | 2077-0472 |
| language | English |
| last_indexed | 2024-03-11T02:53:05Z |
| publishDate | 2023-06-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Agriculture |
| spelling | doaj.art-ac0de176a85c475481920931fa47065e2023-11-18T08:52:43ZengMDPI AGAgriculture2077-04722023-06-01136127410.3390/agriculture13061274The Vertical Price Transmission in Pork Meat Production in the Czech RepublicJitka Sirohi0Zuzana Hloušková1Klára Bartoňová2Karel Malec3Mansoor Maitah4Robert Koželský5Department of Statistics, Faculty of Economics and Management, Czech University of Life Sciences in Prague, 165 00 Prague, Czech RepublicDepartment of Statistics, Faculty of Economics and Management, Czech University of Life Sciences in Prague, 165 00 Prague, Czech RepublicDepartment of Management, Faculty of Economics and Management, Czech University of Life Sciences in Prague, 165 00 Prague, Czech RepublicDepartment of Economics, Faculty of Economics and Management, Czech University of Life Sciences in Prague, 165 00 Prague, Czech RepublicDepartment of Economics, Faculty of Economics and Management, Czech University of Life Sciences in Prague, 165 00 Prague, Czech RepublicDepartment of Economics and Management, Faculty of Business and Law, Pan-European University, 110 00 Prague, Czech RepublicThe paper aims at vertical price transmission of the agri-food market in the Czech Republic. It is focused on the analysis of price transmission in pork meat by investigating the short-run and long-run relationships within the product and the speed of establishing the equilibrium relationship. For this purpose, there is employed specially VECM (Vector Error Correction Model), impulse-response analysis, and decomposition of variance of VECM, which show the system’s reaction. The applied approach considers five alternatives in the Johansen approach. The results suggest that there is an existence of the equilibrium relationship in vertical markets and this relationship is simultaneous and demand-driven. The impulse-response analyses show the response of the processing price to one standard deviation shock to the agriculture price from approximately 15–20 periods reaching long-run equilibrium. The response of the agriculture price to one standard deviation shock to the processing price reaching long-run equilibrium is also from approximately 15–20 periods.https://www.mdpi.com/2077-0472/13/6/1274price transmissionpork meatagro-food marketprocessing priceagriculture priceVECM |
| spellingShingle | Jitka Sirohi Zuzana Hloušková Klára Bartoňová Karel Malec Mansoor Maitah Robert Koželský The Vertical Price Transmission in Pork Meat Production in the Czech Republic Agriculture price transmission pork meat agro-food market processing price agriculture price VECM |
| title | The Vertical Price Transmission in Pork Meat Production in the Czech Republic |
| title_full | The Vertical Price Transmission in Pork Meat Production in the Czech Republic |
| title_fullStr | The Vertical Price Transmission in Pork Meat Production in the Czech Republic |
| title_full_unstemmed | The Vertical Price Transmission in Pork Meat Production in the Czech Republic |
| title_short | The Vertical Price Transmission in Pork Meat Production in the Czech Republic |
| title_sort | vertical price transmission in pork meat production in the czech republic |
| topic | price transmission pork meat agro-food market processing price agriculture price VECM |
| url | https://www.mdpi.com/2077-0472/13/6/1274 |
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