Asymmetry in price transmission in the rice chain in Rio Grande do Sul

Abstract

This work aimed to investigate the presence of asymmetry in the price transmissions of rice in the state of Rio Grande do Sul, Brazil, throughout the production and distribution stages. The analysis was performed for the period from January 1998 to August 2020, using the threshold cointegration error-correction models approach. From this analysis, the evidence of asymmetry was obtained in the transfer of prices along the supply chain of rice in the short term. It was observed that additions are transmitted with greater intensity in view of price decreases. Therefore, these evidences indicate inefficiencies in the analyzed market.