Asymmetric transmission between factory and wholesale prices in fiberboard market in Korea

Byeong Il Ahn; Hyunok Lee

doi:10.1016/j.jfe.2012.06.008

Asymmetric transmission between factory and wholesale prices in fiberboard market in Korea

Byeong Il Ahn, Hyunok Lee

Department of Food and Resource Economics

Research output: Contribution to journal › Article › peer-review

5 Citations (Scopus)

Abstract

This paper extends the estimation of price relationships in wood processing and empirical assessment of asymmetric price transmission by incorporating time lags in both explanatory and dependent variables. Each of the models developed and estimated in this article reveals the existence of asymmetric price transmission between factory and wholesale prices of fiberboard in Korea. Estimation results indicate that wholesalers earn additional profits by exploiting price fluctuations in the markets. The empirical findings in this study suggest the potential for lower wholesale prices of fiberboard with more competition in wholesale marketing.

Original language	English
Pages (from-to)	1-14
Number of pages	14
Journal	Journal of Forest Economics
Volume	19
Issue number	1
DOIs	https://doi.org/10.1016/j.jfe.2012.06.008
Publication status	Published - 2013 Jan

Keywords

Asymmetric transmission
Causality
Co-integration
Fiberboard
Marketing chain
Price relationships

ASJC Scopus subject areas

Forestry
Geography, Planning and Development
Ecology

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10.1016/j.jfe.2012.06.008

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title = "Asymmetric transmission between factory and wholesale prices in fiberboard market in Korea",

abstract = "This paper extends the estimation of price relationships in wood processing and empirical assessment of asymmetric price transmission by incorporating time lags in both explanatory and dependent variables. Each of the models developed and estimated in this article reveals the existence of asymmetric price transmission between factory and wholesale prices of fiberboard in Korea. Estimation results indicate that wholesalers earn additional profits by exploiting price fluctuations in the markets. The empirical findings in this study suggest the potential for lower wholesale prices of fiberboard with more competition in wholesale marketing.",

keywords = "Asymmetric transmission, Causality, Co-integration, Fiberboard, Marketing chain, Price relationships",

author = "Ahn, {Byeong Il} and Hyunok Lee",

note = "Funding Information: This research was supported in part by a Korea University Grant. ",

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N1 - Funding Information: This research was supported in part by a Korea University Grant.

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Y1 - 2013/1

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AB - This paper extends the estimation of price relationships in wood processing and empirical assessment of asymmetric price transmission by incorporating time lags in both explanatory and dependent variables. Each of the models developed and estimated in this article reveals the existence of asymmetric price transmission between factory and wholesale prices of fiberboard in Korea. Estimation results indicate that wholesalers earn additional profits by exploiting price fluctuations in the markets. The empirical findings in this study suggest the potential for lower wholesale prices of fiberboard with more competition in wholesale marketing.

KW - Asymmetric transmission

KW - Causality

KW - Co-integration

KW - Fiberboard

KW - Marketing chain

KW - Price relationships

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ER -

Asymmetric transmission between factory and wholesale prices in fiberboard market in Korea

Abstract

Keywords

ASJC Scopus subject areas

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