Topic
Factor price
About: Factor price is a research topic. Over the lifetime, 2764 publications have been published within this topic receiving 86176 citations.
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TL;DR: This article examined the transmission of international coffee prices through the domestic value chain in Uganda and found that producer price fluctuations are inconsistent with constant transaction costs, and investigated three possible explanations for this finding: storage and contango, marketing costs that increase with price, and trader entry that raises search time.
Abstract: Using detailed data from three simultaneous surveys of producers, traders, and exporters, this paper examines the transmission of international coffee prices through the domestic value chain in Uganda. We find that producer price fluctuations are inconsistent with constant transaction costs. We investigate three possible explanations for this finding: storage and contango, marketing costs that increase with price, and trader entry that raises search time. We test and reject the storage and marketing costs explanation, but we find some evidence of trader entry in response to a rise in export price. Our findings suggest that small itinerant traders enter in response to an export price increase, probably taking advantage of farmers’ ignorance of the rise in wholesale price.
119 citations
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TL;DR: In this paper, a theoretical model of price determination in a marketing channel with risk-averse firms is developed, which shows that if marketing firms are competitive and decreasingly absolute risk averse, then an increase in output price risk should result in higher expected marketing margins.
Abstract: This paper seeks to determine the effect of changes in output price risk on marketing margins. A theoretical model of price determination in a marketing channel with risk-averse firms is developed. This model shows that if marketing firms are competitive and decreasingly absolute risk averse, then an increase in output price risk should result in higher expected marketing margins. Empirical evidence from the wheat marketing channel supports the theoretical model: increased price variability significantly increases wheat marketing margins for both the farm-mill margin and the mill-retail margin. These results suggest a potential benefit from price stabilization programs.
117 citations
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TL;DR: In this paper, the authors explore Fairtrade minimum price setting as an organizational formulation of a critical response to economic liberalism and its underlying notion of value, and show what happens if such meta-level philosophical debates on fairness and markets are lived out organizationally.
Abstract: This article explores Fairtrade minimum price setting as an organizational formulation of a critical response to economic liberalism and its underlying notion of value—a subjective theory of value. The aim of the article is to show what happens if such meta-level philosophical debates on fairness and markets are lived out organizationally. This is achieved by using an ethnographic study of the price setting process of the Fairtrade Labelling Organizations. The case unpacks the complexities of defining a ‘fair’ price beyond the principle of marginal utility. I draw on French pragmatist sociology in order to decompose the political and moral constructions that underpin the organizational practices of minimum price setting. Challenging the assumption of free choice in neo-classical economics, Fairtrade redefines not only how value should be calculated, but also what it is it that should be valued and who values. This makes visible the political confrontation at the point of price determination, notably by pr...
116 citations
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TL;DR: In this paper, a compact, one-sector version of recent large-scale income distribution models is presented, where different specifications of endogenous and exogenous variables in the model (or assumptions about how it is closed) change its qualitative behavior directly.
114 citations
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TL;DR: This paper showed that the factor content of trade can be used to indicate effects of trade on relative factor prices, and that there is a positive correlation between relative changes in the factor contents of trade, appropriately normalized, and proportional changes in factor prices.
114 citations