Is There Any Asymmetry Between Wholesale and Consumer Food Prices in Selected European Countries and Turkey?

Özet

Vertical price linkages (transmission mechanism) constitute an importantpillar of food and agricultural economics research. These linkages contain informationon the relationships between the economic units of the supply chain at different levels.This study aims to investigate the existence of an imperfect price transmissionmechanism in the food markets of the selected countries between January 2000 andJanuary 2018. For this purpose, the transmission mechanism between producer andconsumer prices in the food supply chain is analyzed via a nonlinear autoregressivedistributed lag model (NARDL). The results show that asymmetric price transmission isnot a market anomaly, but it is a common situation in the market. The results imply thatthe presence of asymmetric price transmission in the food market might triggerinequalities by mainly decreasing the income of the lower-income groups.