Price transmission and asymmetric adjustment in the U.S. beef sector

The price linkages among producer, wholesale and retail marketing channels in US beef markets were evaluated. Threshold cointegration methods were used in the study and a threshold error correction model was developed to measure dynamic time paths of price adjustments to shocks at each level in the marketing channels of US beef. The results showed that transmission of shocks was generally unidirectional. In addition, increased responsiveness to price shocks was noted which suggest the efficient transmission of information through vertical marketing channels.