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How Retail Beef and Bread Prices Respond to Changes in Ingredient and Input and Costs AgEcon
Roeger, Edward; Leibtag, Ephraim S..
The extent to which cost changes pass through a vertically organized production process depends on the value added by each producer in the chain as well as a number of other organizational and marketing factors at each stage of production. Using 36 years of monthly Bureau of Labor Statistics price indices data (1972-2008), we model pass-through behavior for beef and bread, two retail food items with different levels of processing. Both the farm-to-wholesale and wholesale-to-retail price responses are modeled to allow for the presence of structural breaks in the underlying long-term relationships between price series. Broad differences in price behavior are found not only between food categories (retail beef prices respond more to farm-price changes than do...
Tipo: Report Palavras-chave: Pass through; Wholesale; Retail; Farm prices; Beef; Bread; Supply chain; Price transmission; Price response; Demand and Price Analysis; Livestock Production/Industries.
Ano: 2011 URL: http://purl.umn.edu/102757
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