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Transparency of Food Pricing (TRANSFOP)

New insights into price transmission

The research theme explores price transmission of commodity price changes through to retail food prices covering a range of commodity/food products for a number of EU Member States. The estimates of price transmission will form the basis of the research themes addressing the role of competition and other market failures throughout the food supply chain across a number of countries. The focus of the econometric models will be on: (i) The determination of the magnitude of the response of prices at different levels of the marketing chain to a shock originating at one particular level of this chain; (ii) The speed of the response (are there significant lags in price adjustment?); (iii) The nature of the response (do adjustments following positive and negative shocks at each marketing level exhibit asymmetry?); (iv) The direction of the response (do adjustments differ depending on whether a shock is transmitted upwards or downwards the supply chain?); (v) Do the responses to a shock exhibit marked volatility?

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