Frédéric Gonzales, Patrice Guillotreau, Laurent Le Grel, and Michel Simioni, “Detecting Asymmetric Price Transmission with Consistent Threshold along the Fish Supply Chain”, Canadian Journal of Agricultural Economics, Ottawa: Canadian Agricultural Economics and Farm Management Society, vol. 61, 2013, pp. 37–60.
The present study deals with asymmetric price transmission (APT) along the fish value chain by using a consistent threshold autoregressive (consistent TAR and momentum-threshold autoregressive [M-TAR]) model. A nonzero threshold captures strategic behaviors and adjustment costs that are not observable with small price changes around a zero threshold. Fish farming, because of greater control over supply, is expected to produce less asymmetry than wild harvesting. Asymmetry is notwithstanding found for both wild cod and farmed salmon marketed in France, but only with consistent thresholds and operating in opposite ways. The results are discussed with regard to the trade restrictions imposed by the Common Fisheries Policy