Vol. 75 No. 1 (2020)
Articles

Asymmetric price transmission in the commercialization of rice in Brazil

Vanclei Zanin
Department of Economics and Statistics of the Rio Grande do Sul State (DEE-RS)
Julyerme Matheus Tonin
Maringa State University (UEM) - Paraná, Brazil
Vinícius Halmenschlager
Institute of Economics, Business Administration and Accounting Sciences, Federal University of Rio Grande - Brazil
Published June 11, 2020
Keywords
  • price transmission,
  • minimum prices,
  • rice market
How to Cite
Zanin, V., Tonin, J. M., & Halmenschlager, V. (2020). Asymmetric price transmission in the commercialization of rice in Brazil. Italian Review of Agricultural Economics, 75(1), 19-35. https://doi.org/10.13128/rea-11739

Abstract

This paper aims to investigate the presence of price transfer asymmetry (APT) in the rice production chain in Rio Grande do Sul incorporating in the analysis the effects of public policy interventions, specifically the agricultural minimum prices. The results indicate the occurrence of positive APT among all relations analyzed (contemporaneous, lagged or cumulative) in the rice production chain. In general, the industry-producer relationship presented the best adjustment and the existence of positive asymmetry indicates that this market link takes advantage of the direct relationship with the producer to pass through price increases more quickly reductions to its consumers. Finally, it was identified that in periods of market prices below the minimum price, the symmetry was not rejected, indicating its permanence in times of greater government intervention.

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