Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/174448 
Year of Publication: 
2016
Series/Report no.: 
Working Papers No. 2016-18
Publisher: 
Banco de México, Ciudad de México
Abstract: 
We document the existence of asymmetric price transmission in Mexico for a wide variety of food and non-food products, in terms of magnitude and speed, for two segments of the supply chain: i) Producer (producer-wholesale) and ii) Consumer (wholesale-retail). We find that asymmetric price transmission is a common behavior in many of the good markets that we studied. However, there are important differences across stages of the supply chain: in the Producer segment, the analyzed food products exhibit larger asymmetries compared to non-food products, while we observe the opposite in the Consumer segment. The existence of these asymmetries may have important welfare effects on poor households, since they allocate a higher proportion of their expenditure for the acquisition of goods that present positive price asymmetries.
Subjects: 
Price transmission
Positive price asymmetries
Food merchandises
Manufactured goods
JEL: 
D43
L13
L11
C25
Document Type: 
Working Paper
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