Journal of Forest Economics > Vol 19 > Issue 1

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

Byeong-Il Ahn, ahn08@korea.ac.kr , Hyunok Lee, hyunok@primal.ucdavis.edu
 
Suggested Citation
Byeong-Il Ahn and Hyunok Lee (2013), "Asymmetric transmission between factory and wholesale prices in fiberboard market in Korea", Journal of Forest Economics: Vol. 19: No. 1, pp 1-14. http://dx.doi.org/10.1016/j.jfe.2012.06.008

Publication Date: 0/1/2013
© 0 2013 Byeong-Il Ahn, Hyunok Lee
 
Subjects
 
Keywords
JEL Codes:D49L73
Price relationshipsAsymmetric transmissionFiberboardCausalityCo-integrationMarketing chain
 

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In this article:
Introduction 
Empirical models 
Data 
Preliminary tests 
Estimation results of asymmetric price transmission 
Summary and implications 

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.

DOI:10.1016/j.jfe.2012.06.008