- Ekonomik ve Sosyal Araştırmalar Dergisi
- Bahar
- PRICE TRANSMISSION AND PASS-THROUGH EFFECT IN U.S. ALCOHOLIC BEVERAGE INDUSTRIES
PRICE TRANSMISSION AND PASS-THROUGH EFFECT IN U.S. ALCOHOLIC BEVERAGE INDUSTRIES
Authors : T. Parker Ballinger, J. Bert Stine, Mark A. Thompson
Pages : 23-38
View : 32 | Download : 33
Publication Date : 2009-04-21
Article Type : Research
Abstract :This paper examines the time-series properties of price changes among sectors of the U.S. alcoholic beverage industries. Utilizing vector autoregression and impulse response analysis, the pass-through effect between the producer price index and consumer price index is examined for breweries, distilleries, and wineries. The findings suggest that industry-level price changes are stationary with significant pass-through effects in breweries and wineries. The implications are that price shocks are temporary and may transmit onto consumers in the form of higher (or lower) prices. Understanding industry-level price dynamics are important to managers in formulating long-term cost estimates, budget formation, and forecasting price changes in alcoholic beverage industries.Keywords : Inflation, Stationarity, Vector Autoregression, Pass-Through Effect, Alcoholic Beverage Industries