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ID: 168688

Asymmetric price transmission in the Hungarian retail electricity market / Szőke, Tamás

Szőke, Tamás	Journal Article
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Summary/Abstract

The article compares the market power of Hungarian electricity traders during the partially liberalised transitional market model from 2004 to 2008 and the fully liberalised period lasting since 2008. In our empirical work, we use an econometric modelling technique based on asymmetric price transmission (APT) theory to measure the market power of traders in the electricity market. The aim of our work is to conduct a quantitative analysis of the Hungarian electricity trading market by applying the APT modelling technique – used widely in agro-economic analyses – to electricity markets. The intuition behind the method is the assumption that asymmetric price transmission refers to deviations from perfect competition. The research has found that different regulation regimes lead to different patterns of asymmetry in price transmission and the results underline that the market position of electricity traders have improved since the introduction of the liberalised market model. By mapping the results of the APT model to the actual policy and market changes we argue that the APT method is a useful tool for analysing the competition on electricity markets.

Key Words

Hungary ; Econometrics ; Electricity ; Price Transmission ; Market Power ; Vertical Integration

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ID: 110248

How connected are Chinese farmers to retail markets? new eviden / Liu, Bo; Keyzer, Michiel; Boom, Bart van den; Zikhali, Precious

Keyzer, Michiel	Journal Article
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2012.

Summary/Abstract

This paper examines the extent to which Chinese farmers are connected to regional agricultural markets by looking at the intensity of price transmission from retail markets to the farmgate. This intensity is indicative of the extent to which farmers might benefit from improved marketing opportunities and be exposed to price risks. We estimate the elasticity of farmgate prices to retail prices using price data for 170 markets, in 29 out of 33 provinces of China, at the detail of 12 main products and for the five-year period 1996 to 2000. In each province we find strong linkages between retail and farmgate prices with elasticities ranging between 0.6 and 1 and intensifying over time. This suggests that Chinese farmers are generally well connected to retail markets and that this connectivity has strengthened in the period considered, creating not only new opportunities but also new risks. It is also found that linkages are relatively weak in inland provinces, which is a point of concern in view of Chinese policies to create equal opportunities and equitable growth.

Key Words

Agriculture ; China ; Price Transmission ; Farmgate Prices

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ID: 085677

Trade policy and the structure of incentives in Thai agriculture / Warr, Peter

Warr, Peter	Journal Article
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Summary/Abstract

As Thailand has industrialized, successive Thai governments have become increasingly interested in assisting agricultural producers and processors. But the export orientation of Thai agriculture has limited the scope for protection policy as a means of influencing domestic commodity prices. This paper uses comparisons between the prices of agricultural commodities in domestic and international markets as a means of studying the magnitudes of these interventions. Thailand is unusual in that except for the cases documented in this paper, assistance to rural people has primarily taken the form of direct transfers and subsidized loans, rather than interventions in agricultural commodity markets.

Key Words

Thailand - Commercial Policy ; Agriculture - Thailand ; Thailand - Trade Policy ; Price Transmission ; Rice - Thailand - Agriculture

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