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

doi:10.1080/00036846.2018.1524570

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

Agricultural Economics

Research output: Contribution to journal › Article › peer-review

8 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 language	English
Pages (from-to)	1025-1039
Number of pages	15
Journal	Applied Economics
Volume	51
Issue number	10
DOIs	https://doi.org/10.1080/00036846.2018.1524570
State	Published - Feb 25 2019

Bibliographical note

Funding Information:
The authors would like to thank the Marketing Data Center at the University of Chicago Booth School of Business. Researcher(s) own analyses calculated (or derived) based in part on data from The Nielsen Company (US), LLC and marketing databases provided through the Nielsen Datasets at the Kilts Center for Marketing Data Center at The University of Chicago Booth School of Business. The conclusions drawn from the Nielsen data are those of the researcher(s) and do not reflect the views of Nielsen. Nielsen is not responsible for, had no role in, and was not involved in analyzing and preparing the results reported herein.

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

Access to Document

10.1080/00036846.2018.1524570

Cite this

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title = "The price relationship between organic and non-organic vegetables in the U.S.: evidence from Nielsen scanner data",

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.",

keywords = "Asymmetric price transmission, Nielsen scanner data, threshold cointegration test, threshold vector autoregressive model, vector error correction model",

author = "Kim, {Gwan Seon} and Seok, {Jun Ho} and Mark, {Tyler B.} and Reed, {Michael R.}",

note = "Funding Information: The authors would like to thank the Marketing Data Center at the University of Chicago Booth School of Business. Researcher(s) own analyses calculated (or derived) based in part on data from The Nielsen Company (US), LLC and marketing databases provided through the Nielsen Datasets at the Kilts Center for Marketing Data Center at The University of Chicago Booth School of Business. The conclusions drawn from the Nielsen data are those of the researcher(s) and do not reflect the views of Nielsen. Nielsen is not responsible for, had no role in, and was not involved in analyzing and preparing the results reported herein. Publisher Copyright: {\textcopyright} 2018, {\textcopyright} 2018 Informa UK Limited, trading as Taylor & Francis Group.",

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AU - Reed, Michael R.

N1 - Funding Information: The authors would like to thank the Marketing Data Center at the University of Chicago Booth School of Business. Researcher(s) own analyses calculated (or derived) based in part on data from The Nielsen Company (US), LLC and marketing databases provided through the Nielsen Datasets at the Kilts Center for Marketing Data Center at The University of Chicago Booth School of Business. The conclusions drawn from the Nielsen data are those of the researcher(s) and do not reflect the views of Nielsen. Nielsen is not responsible for, had no role in, and was not involved in analyzing and preparing the results reported herein. Publisher Copyright: © 2018, © 2018 Informa UK Limited, trading as Taylor & Francis Group.

PY - 2019/2/25

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N2 - 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.

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