Asymmetric Pass-Through of Wholesale Price Shocks to Retail Prices: The Case of the Greek Fruits and Vegetables Market
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Athanasios Dimas
Abstract
The objective of this study is to examine the dynamic adjustment of retail prices following changes in input prices within an oligopolistic and vertically non-integrated market. Data are weekly retail and wholesale prices between February 2010 and August 2013. The methodology employed is the Nonlinear Autoregressive Distributed Lag (NARDL) model, which captures both short- and long-run price dynamics. The empirical findings reveal evidence of the “rockets and feathers” hypothesis for more than half of the products examined, indicating an inflationary impact on retail prices, thus a temporal or permanent decrease in consumer welfare. This result is in contrast with the perishable nature of fruits and vegetables.
This Appendix presents the wholesale-retail prices dynamic multipliers for each product.
Wholesale-Retail Prices Dynamic Multipliers
See Figures A1, A2, A3, A4, A5, A6, A7, A8, A9, A10, A11, A12, A13, and A14.
Apple. Notes: 90 % bootstrap Confidence Interval is based on 200 replications. Source: Author’s calculations based on data from the Greek Ministry of Development and the Central Market.
Cucumber. Notes: 90 % bootstrap Confidence Interval is based on 200 replications. Source: Author’s calculations based on data from the Greek Ministry of Development and the Central Market.
Eggplant. Notes: 90 % bootstrap Confidence Interval is based on 200 replications. Source: Author’s calculations based on data from the Greek Ministry of Development and the Central Market.
Fresh onion. Notes: 90 % bootstrap Confidence Interval is based on 200 replications. Source: Author’s calculations based on data from the Greek Ministry of Development and the Central Market.
Greens. Notes: 90 % bootstrap Confidence Interval is based on 200 replications. Source: Author’s calculations based on data from the Greek Ministry of Development and the Central Market.
Lemon. Notes: 90 % bootstrap Confidence Interval is based on 200 replications. Source: Author’s calculations based on data from the Greek Ministry of Development and the Central Market.
Lettuce. Notes: 90 % bootstrap Confidence Interval is based on 200 replications. Source: Author’s calculations based on data from the Greek Ministry of Development and the Central Market.
Onion. Notes: 90 % bootstrap Confidence Interval is based on 200 replications. Source: Author’s calculations based on data from the Greek Ministry of Development and the Central Market.
Orange. Notes: 90 % bootstrap Confidence Interval is based on 200 replications. Source: Author’s calculations based on data from the Greek Ministry of Development and the Central Market.
Pepper. Notes: 90 % bootstrap Confidence Interval is based on 200 replications. Source: Author’s calculations based on data from the Greek Ministry of Development and the Central Market.
Potato. Notes: 90 % bootstrap Confidence Interval is based on 200 replications. Source: Author’s calculations based on data from the Greek Ministry of Development and the Central Market.
Spinach. Notes: 90 % bootstrap Confidence Interval is based on 200 replications. Source: Author’s calculations based on data from the Greek Ministry of Development and the Central Market.
Tomato. Notes: 90 % bootstrap Confidence Interval is based on 200 replications. Source: Author’s calculations based on data from the Greek Ministry of Development and the Central Market.
Zucchini. Notes: 90 % bootstrap Confidence Interval is based on 200 replications. Source: Author’s calculations based on data from the Greek Ministry of Development and the Central Market.
Acknowledgements
This paper is based on Chapter 2 of my Ph.D. thesis at the Department of Economics of the Athens University of Economics and Business. I am indebted to Christos Genakos for helpful discussions and constructive criticism. I am also grateful to colleagues at the Hellenic Competition Commission, and especially to Ioannis Lianos and Ioannis Kalozymis for fruitful discussions and valuable comments. All errors are mine.
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