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

Byeong Il Ahn, Hyunok Lee

Research output: Contribution to journalArticle

4 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 languageEnglish
Pages (from-to)1-14
Number of pages14
JournalJournal of Forest Economics
Volume19
Issue number1
DOIs
Publication statusPublished - 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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