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What is Asymmetric Price Transmission in Agriculture about?

The paper finds evidence that when international agricultural prices decline, the decline is transmitted more fully to local prices than when international prices rise. This asymmetry is consistent with large agricultural intermediaries exercising monopsony power. The intermediaries are able to dampen the transmission of international price increases to local markets more than price decreases. This asymmetric price transmission can negatively impact poor farmers in developing countries.

Author

lidianeeichelt

Language

EN