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Price transmission in the European tomatoes and cauliflowers sectors

Santeramo, Fabio Gaetano (2012): Price transmission in the European tomatoes and cauliflowers sectors.

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The paper explores the characteristics of spatial price movements for fresh vegetables. The analysis is conducted on tomatoes and cauliflowers prices collected on main production and consumption European markets. It is based on the estimation of an asymmetric threshold autoregressive econometric specification that is shown capable of providing estimates of transaction costs and speeds of price transmission among spatially separated markets. We provide an assessment of the average elapsing time for the transmission of price shocks. Our findings, suggesting that spatial price transmissions in the EU vegetable sector is barely symmetric, lead to interesting policy considerations for the fresh vegetables sectors.

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