An empirical investigation of the linkages between conventional and organic milk markets in Austria
Year: 2024
Type: article
Abstract: This work investigates the strength and the pattern of linkages among the three markets of qualitatively differentiated milk (i.e., conventional, organic without heymilk, and organic with heymilk) in Austria using the flexible TVP-VAR frequency connectedness approach and information on prices from 2018 to 2023. The main empirical findings are: (a) Taken together, the markets have maintained a moderate degree of connectedness to each other. (b) Price linkages have been frequency-dependent; much of the adjustments to incoming information have been completed within 3 months. (c) Connectedness has been asymmetric; the highest quality (organic with heymilk) has been a net transmitter of price shocks to organic without heymilk. (d) The intensity of connectedness has been time-varying; however, the internal structure of the market network (i.e., the net transmitters and receivers of price shocks) has remained fairly stable.
Source: Economic Analysis Letters
DOI: 10.58567/eal03030006
Author: Panos Fousekis
Institution: Aristotle University of Thessaloniki
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
SDG: Zero hunger
Open Access status: hybrid
OpenAlex ID: W4404488194