Price transmition among colombian cattle regional markets

Transmisión de precios entre mercados regionales ganaderos de Colombia

To evaluate the efficiency of the regional agricultural markets, the mechanismg of price transmission among them was analysed using econometric models of non stationary temporal series, such as models of co-integration and models of correction of error. To measure the magnitude of the short-term transmission, the analysis of generalized impulse-response was used. As a case of study, the mechanism of price transmission of fattened cattle among regional Colombian markets was analysed. Empirical evidence of the permanency to relations of long-term equilibrium among the market prices geographically separated and hypothesis test related to the structure of those relations is provided. The data showed that the analysed markets are efficient; though, the integration is greater among the markets of origin and destination than among origin markets themselves.

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