최종 수정일: 2021년 10월 5일
1. Seminar Topic Price Transmission between Wholesale and Retail Prices of the U.S. Beef Industry: Differences among Quality Grades and Product Cuts
2. Presenter Chanjin Chung (Oklahoma State University)
3. When 2018. 11. 1. (Thur) - 17:00 ~ 18:00
4. Where Seminar room 206, #101, Graduate School of International Agricultural Technology
5. Main Contents ○ In an ideal situation, the rise and fall of input costs at the wholesale level, for example, is expected to be immediately and completely transmitted to the price paid by consumers to retailers. However, it is observed frequently retail prices rise rapidly when upstream prices rise, but fall slowly when upstream prices fall. → The Rocket and Feather Effect
○ This study examines price transmission from wholesale to retail markets of beef products differentiated by quality grades and cuts in the U.S. beef industry.
○ The dataset has 141 monthly observations on six grade-cuts of beef from January 2002 to September 2013, i.e., three Choice-cuts and three Select-cuts (chuck, round, and sirloin).
6. Method-used ○ Threshold-based autoregressive (TAR) and error correction models (TECMs)
7. Results and Conclusion ○ Product of higher quality (choice) shows slower price transmission than a lower quality product (select).
○ More rocket and feather effect in high quality products: the retail price adjustment responding to decreasing wholesale price is slower in high grade (Choice) than in low grade (Select), while the adjustment to increasing wholesale price is faster in high grade products than in low grade products.
○ The retail price of high-quality cut (sirloin) also made slower adjustment than prices of other cuts (chuck and round) at the decreasing phase of the wholesale price; but made no faster adjustment than other cuts at the increasing phase of the wholesale price.
○ Clear threshold effects in price transmission.
○ Our findings imply that retailers find it more profitable to slowly (quickly) adjust to falling (rising) wholesale prices, in particular for higher quality products.