Detecting threshold effects in price transmission

The analysis of price transmission plays a key role in understanding markets integration. This helps identify the nature of the relationship between geographically distant markets and cross-commodity price transmission, as well as the impact of liberalization policies and the identification of regio...

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Detalles Bibliográficos
Autores principales: Traoré, Fousseini, Diop, Insa
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2021
Materias:
Acceso en línea:https://hdl.handle.net/10568/142635
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author Traoré, Fousseini
Diop, Insa
author_browse Diop, Insa
Traoré, Fousseini
author_facet Traoré, Fousseini
Diop, Insa
author_sort Traoré, Fousseini
collection Repository of Agricultural Research Outputs (CGSpace)
description The analysis of price transmission plays a key role in understanding markets integration. This helps identify the nature of the relationship between geographically distant markets and cross-commodity price transmission, as well as the impact of liberalization policies and the identification of regions exposed to systemic shocks. This technical contributes to the debate between symmetric and asymmetric price transmission and proposes to present the traditional and new approaches for detecting threshold effects in price transmission while focusing on their advantages and limitations. There is no one-size-fits-all method to detect threshold effects in price transmission. Experts need to select a combination of elements (context of study, the economy under consideration, data availability…) to justify the relevancy of their choice. Beyond the presentation of the methods for detecting thresholds in price transmission, we perform an application in the case of the rice market in Senegal. The results support the evidence of an asymmetric price transmission between world and domestic prices in the short-run and a symmetric transmission in the long-run.
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spelling CGSpace1426352025-11-06T06:44:01Z Detecting threshold effects in price transmission Traoré, Fousseini Diop, Insa models agriculture markets econometric models prices agricultural markets The analysis of price transmission plays a key role in understanding markets integration. This helps identify the nature of the relationship between geographically distant markets and cross-commodity price transmission, as well as the impact of liberalization policies and the identification of regions exposed to systemic shocks. This technical contributes to the debate between symmetric and asymmetric price transmission and proposes to present the traditional and new approaches for detecting threshold effects in price transmission while focusing on their advantages and limitations. There is no one-size-fits-all method to detect threshold effects in price transmission. Experts need to select a combination of elements (context of study, the economy under consideration, data availability…) to justify the relevancy of their choice. Beyond the presentation of the methods for detecting thresholds in price transmission, we perform an application in the case of the rice market in Senegal. The results support the evidence of an asymmetric price transmission between world and domestic prices in the short-run and a symmetric transmission in the long-run. 2021-10-21 2024-05-22T12:10:47Z 2024-05-22T12:10:47Z Working Paper https://hdl.handle.net/10568/142635 en Open Access application/pdf International Food Policy Research Institute Traore, Fousseini; and Diop, Insa. 2021. Detecting threshold effects in price transmission. AGRODEP Technical 22. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/142635
spellingShingle models
agriculture
markets
econometric models
prices
agricultural markets
Traoré, Fousseini
Diop, Insa
Detecting threshold effects in price transmission
title Detecting threshold effects in price transmission
title_full Detecting threshold effects in price transmission
title_fullStr Detecting threshold effects in price transmission
title_full_unstemmed Detecting threshold effects in price transmission
title_short Detecting threshold effects in price transmission
title_sort detecting threshold effects in price transmission
topic models
agriculture
markets
econometric models
prices
agricultural markets
url https://hdl.handle.net/10568/142635
work_keys_str_mv AT traorefousseini detectingthresholdeffectsinpricetransmission
AT diopinsa detectingthresholdeffectsinpricetransmission