On Policy Interventions and Vertical Price Transmission: The Italian Milk Supply Chain Case
By: Antonioli, Federico ; Santeramo, Fabio Gaetano
Antonioli, Federico ; Santeramo, Fabio Gaetano, On Policy Interventions and Vertical Price Transmission: The Italian Milk Supply Chain Case, Journal of Agricultural and Resource Economics, Volume 47, Issue 2, May 2022, Pages 342-354
During the last 2 decades, two policy reformsÑthe Fischler Reform and the Common Market Organization ReformÑhave pushed the EU dairy sector toward economic liberalization. These changes affected the EU supply chains at different levels, altering the mechanisms of vertical price transmission. Against this backdrop, we apply error correction models to assess how price signals are passed through before and after the Italian milk supply chain reforms. In particular, we study the degree of price transmission asymmetries and conclude that market sluggishness has increased in the post-reform period, but the asymmetric dynamics are less evident. Reflections on future research needs are discussed.