Measuring the welfare impact of asymmetric price transmission

摘要: Several previous studies report that prices are asymmetrically transmitted across levels in US commodity markets, but the evidence about economic magnitude of phenomenon is limited. In this paper, we use estimated asymmetric error correction models (ECM) for producer, wholesale, and retail pork beef to compute compensating variation associated with price transmission consumers. Overall, does not have a substantial impact—the expected welfare loss average consumer $1.10 per year, which less than 1% annual per–capita expenditures.