Price Cycles and Asymmetric Price Transmission in the U.S. Pork Market

摘要: Economists have proposed several plausible explanations for observed price transmission asymmetries in commodity markets. Unfortunately, the econometric methods commonly used such studies cannot empirically distinguish pricing behavior under competing theories. We argue that theories may be classified by firm responses to high- and low-frequency cycles use Engle's band spectrum regression test symmetry of weekly pork prices. The findings indicate changes wholesale prices are asymmetrically transmitted retail relatively cycles, which does not support search costs other high-frequency explanations. Conversely, adjust farm at all frequencies. Copyright 2001, Oxford University Press.