The price relationship between organic and non-organic vegetables in the U.S. evidence from Nielsen scanner data

Gwan Seon Kim, Jun Ho Seok, Tyler B. Mark, Michael R. Reed

Research output: Contribution to journalArticlepeer-review

11 Scopus citations

Abstract

This study investigates price relationships between organic and conventional carrots, tomatoes, and lettuce in the U.S. utilizing Nielsen scanner data from 2006–2015. We employ a threshold vector error correction model (TVECM), threshold vector autoregressive model (TVAR), and threshold cointegration test to test whether market integration exists between organic and conventional vegetables as well as the existence of asymmetric price transmission. The results find positive long-run relationships between organic and conventional prices of carrots and tomatoes and show the existence of asymmetric price transmission in price pairs of lettuce and tomatoes. Our findings suggest that the price relationship between organic and conventional vegetables varies by characteristics, such as shelf life, volatility in the price premium, and substitutability.

Original languageEnglish
Pages (from-to)1025-1039
Number of pages15
JournalApplied Economics
Volume51
Issue number10
DOIs
StatePublished - Feb 25 2019

Bibliographical note

Publisher Copyright:
© 2018, © 2018 Informa UK Limited, trading as Taylor & Francis Group.

Keywords

  • Asymmetric price transmission
  • Nielsen scanner data
  • threshold cointegration test
  • threshold vector autoregressive model
  • vector error correction model

ASJC Scopus subject areas

  • Economics and Econometrics

Fingerprint

Dive into the research topics of 'The price relationship between organic and non-organic vegetables in the U.S. evidence from Nielsen scanner data'. Together they form a unique fingerprint.

Cite this