Abstract In integrated markets, price shocks in one market are answered in the other markets. Under these conditions, price differences of homogenous commodities in various markets arise from transit costs. Survey of spatial price transmission is one of the methods for studying market integration. With this point of view, spatial price transmission process of pistachio is studied in threshold price transmission models framework. Threshold price transmission models from producer province (Kerman) to consumer provinces (the other provinces of Iran) were estimated by using monthly retail price index data of pistachio for March 2007 to February 2013 period. The results showed that there is positive asymmetric price transmission in the most provinces of country in short-run and marketing agents gain extra benefits and consumers loss from different speed of market integration when price decreases compared with when price increases. But at the whole, markets are integrated in long-run and there is no long-run asymmetric price transmission. With attention to the almost competitive structure of pistachio market at retail level, asymmetric price transmission probably arise from inflation, inventory management, adjustment costs and asymmetric information. Thus, ant inflation policies, assembling market information systems and creating stock market help to the symmetric price transmission and more integrated markets.
Nikoukar, A. (2016). A Survay of Iran’s Pistachio Market Integration, An Application of Threshold Spatial Price Transmission Models. Agricultural Economics, 9(4), 1-29.
MLA
Afsaneh Nikoukar. "A Survay of Iran’s Pistachio Market Integration, An Application of Threshold Spatial Price Transmission Models". Agricultural Economics, 9, 4, 2016, 1-29.
HARVARD
Nikoukar, A. (2016). 'A Survay of Iran’s Pistachio Market Integration, An Application of Threshold Spatial Price Transmission Models', Agricultural Economics, 9(4), pp. 1-29.
VANCOUVER
Nikoukar, A. A Survay of Iran’s Pistachio Market Integration, An Application of Threshold Spatial Price Transmission Models. Agricultural Economics, 2016; 9(4): 1-29.
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