Hostname: page-component-cd9895bd7-gvvz8 Total loading time: 0 Render date: 2024-12-28T02:05:43.914Z Has data issue: false hasContentIssue false
  • English
  • Français

Market Structure and Spatial Price Dynamics

Published online by Cambridge University Press:  05 September 2016

B. Wade Brorsen ,
Jean-Paul Chavas  and
Warren R. Grant
B. Wade Brorsen
Affiliation:
Oklahoma State University
Jean-Paul Chavas
Affiliation:
University of Wisconsin
Warren R. Grant
Affiliation:
National Economics Division, ERS/USDA
Get access Rights & Permissions [Opens in a new window]

Abstract

A method was developed with time series models to test hypotheses about the relationship between market structure and spatial price dynamics. Long-run dynamic multipliers measuring the magnitude of lagged adjustment for spatial milled rice prices were calculated from the time series model and used as the dependent variable in a regression model that included a number of factors expected to influence price determination. Results show that price adjustments were slower as regional submarket concentration increased and were faster in the regions with a higher market share. Arkansas, the state with the largest market share, was consistently a price leader.

Keywords

ricemarket structurespatial pricing
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 23 , Issue 2 , December 1991 , pp. 65 - 74
Copyright
Copyright © Southern Agricultural Economics Association 1991

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Akaike, H. “Fitting Autoregressive Models for Prediction.” Annals Inst. Stat. Math., 21(1969):826–839.Google Scholar
Bedrossian, Arakel and Demetrios Moschos. “Industrial Structure, Concentration, and the Speed of Price Adjustment” J. Indust. Econ., 36(1988):459–481.Google Scholar
Brorsen, B. Wade. “A Study of the Efficiency and Dynamics of Rice Prices” Ph.D. dissertation, Texas A&M University, 1983.Google Scholar
Brorsen, B. Wade, Chavas, Jean-Paul, and Grant, Warren R.. “A Dynamic Analysis of Prices in the U.S. Rice Marketing Channel” J. Bus. & Econ. Stat., 4(1985a):362–369.Google Scholar
Brorsen, B. Wade, Chavas, Jean-Paul, Grant, Warren R., and Ngenge, A.W.. “Spatial and Temporal Relationships Among Selected U.S. Grain Prices” N Cent. J. Agr. Econ. 7(1985b):1–10.Google Scholar
Carlton, Dennis. “The Rigidity of Prices” Am. Econ. Rev., 76(1986):637–658.Google Scholar
Chow, Gregory C. Analysis and Control of Dynamic Economic Systems. New York: Wiley & Sons, 1975.Google Scholar
Danthine, J.P. “Martingale Market Efficiency and Commodity Prices” European Econ. Rev, 10(1977): 1–17.Google Scholar
Depodwin, H.J. and Seiden, R.T.. “Business Pricing Policies and Inflation,” J. Pol. Econ., 71(1963):116–127.Google Scholar
Dhrymes, Phoebus J. “Restricted and Unrestricted Reduced Forms: Asymptotic Distribution and Relative Efficiency” Econometrica, 4(1973):119–134.CrossRefGoogle Scholar
Dixon, R. “Industry Structure and the Speed of Price-Adjustment” J. Indust. Econ., 31(1983):25–37.Google Scholar
Domberger, S. Industrial Structure, Pricing and Inflation. Oxford: Martin Robertson, 1983.Google Scholar
Fama, E.F. “Efficient Capital Markets: A Review of Theory and Empirical Work” J. Finance, 25(1976):383–423.Google Scholar
Fuller, Wayne. An Introduction to Time Series Analysis. New York: Wiley & Sons, 1976.Google Scholar
Geweke, J. “Inference and Causality in Economic Time Series Models” Handbook of Econometrics, Vol. 2, Griliches, Z. and Intriligator, M., eds. Amsterdam: North Holland, 1984.Google Scholar
Geweke, J. “Measurement of Linear Dependence and Feedback Between Time Series” J. Am. Stat. Assoc., 77(1982):304–324.Google Scholar
Ginsburgh, Victor and Michel, Philippe. “Adjustment Costs, Concentration, and Price Behavior” J. Indust. Econ., 36(1988):477–481.Google Scholar
Holder, Shelby H. Jr. Unpublished data.Google Scholar
Holder, Shelby H. Jr. and Warren Grant, R.. “U.S. Rice Industry” Washington, DC: U. S. Department of Agriculture, Agri. Econ. Rep. No. 444, Aug. 1979.Google Scholar
Holthausen, D.M. “Kinky Demand, Risk Aversion, and Price Leadership” Int. Econ. Rev., 20(1978):341–348.CrossRefGoogle Scholar
Judge, George G., Griffiths, W.E., Carter Hill, R., Lutkepohl, Helmut, and Lee, Tsoung-Chao. The Theory and Practice of Econometrics, 2nd ed. New York: Wiley & Sons, 1985.Google Scholar
Kardasz, Stanley W. and Stollery, Kenneth R.. “Market Structure and Price Adjustment in Canadian Manufacturing Industries” J. Econ. and Bus., 40(1988):335–342.Google Scholar
Markham, J.W. “The Nature and Significance of Price Leadership,” Am. Econ. Rev., 41(1951):891–905.Google Scholar
Means, G.C. “The Administered-Price Thesis Confirmed” Am. Econ. Rev., 62(1977):292–306.Google Scholar
Nachane, Dilip M., Nadkarni, Ramesh M., and Karnik, Ajit V.. “Co-integration and Causality Testing of the Energy-GDP Relationship: A Cross-Country Study.” Appi Econ., 20(1988):1511–1531.CrossRefGoogle Scholar
Qualls, P.D. “Market Stracture and the Cyclical Flexibility of Price-Cost Margins” J Business. 52(1979):305–325.Google Scholar
Ravallion, M. “Testing Market Integration,” Am. J. Agr. Econ., 68(1986):102–109.Google Scholar
Rice Miller's Association. Shipments of Milled Rice. Arlington, VA, selected monthly reports.Google Scholar
Ripley, F.C. and Segal, L.. “Price Determination in 395 Manufacturing Industries” Rev. Econ. and Stat., 55(1973):263–271.Google Scholar
Ross, H.N. and Krausz, J.. “Buyers’ and Sellers’ Prices and Administered Behavior” Rev. Econ. and Stat, 68(1986):369–678.Google Scholar
Samuelson, P.A. “Proof That Properly Anticipated Prices Fluctuate Randomly” Indust. Management Rev., 6(1965):41–50.Google Scholar
Saxonhouse, Gary R. “Regressions from Samples Having Different Characteristics” Rev. Econ. and Stat., 59(1977):234–237.Google Scholar
Schroeder, Ted C. and Goodwin, Barry K.. “Regional Fed Cattle Price Dynamics” West. J. Agr. Econ., 15(1990):111–122.Google Scholar
Sims, C. “Macroeconomics and Reality” Econometrica, 48(1980): 1–48.Google Scholar
Sporleder, T.L. and Chavas, J.P.. “Aspects of Pricing Efficiency and the Value of Information.” Unpublished Working Paper, Department of Agricultural Economics, Texas A&M University, May 1979.Google Scholar
Spriggs, J., Kaylen, M., and Bessler, D.. “The Lead-Lag Relationship Between Canadian and Wheat U.S. Prices.” Am. J. Agr. Econ., 64(1982):569–572.Google Scholar
U.S. Department of Agriculture. Rice Market News. San Francisco: Agricultural Marketing Service, selected issues.Google Scholar
Weiss, L.W. “Stigler, Kindahl, and Means on Administered Prices” Am. Econ. Rev., 67(1977):610–619.Google Scholar