Energy price shocks and milk price adjustments |
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| Authors: | Xun Li Rigoberto A Lopez Rui Wang |
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| Institution: | 1. School of Economics and Management, Wuhan University, Wuhan, China;2. Department of Agricultural and Resource Economics, University of Connecticut, Storrs, CT, USA;3. Department of Economics, Tulane University, New Orleans, LA, USA |
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| Abstract: | Much previous research on energy price transmission sheds light on the relationship between oil prices and aggregate commodity prices, such as for agricultural products, or food price indexes. This letter uses data from 12 U.S. cities between 2001 and 2011 to examine how energy prices are transmitted to fluid milk products at the retail level. Results indicate the existence of an asymmetric energy pass-through (a rise is transmitted faster than a fall in prices) and that private label milk products are more insulated from energy price shocks and adjust at similar rate with national manufacturer brands. |
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| Keywords: | Energy Shock Price Adjustment National Brand Private Label |
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