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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: In this article, the authors found that an oil price shock in interaction with a firm's stock price volatility has a negative effect on investment by that firm, both in the short and long-term.
Abstract: It is found that an oil price shock in interaction with a firm’s stock price volatility has a ‎negative effect on investment by that firm, both in the short and long-term. In the presence of ‎this interaction term, linear variables in oil price shocks are not statistically significant. There is ‎evidence that for the short-term effects of the interaction variable, the particular magnitude of an ‎oil price shock may not be as important as the fact that there is an oil price shock. For the long-‎term effects, however, the magnitude of the oil price shock does matter. Over a longer horizon, ‎oil price shocks depress investment more at firms facing greater uncertainty. An increase in firm ‎stock price volatility continues to reduce the link between sales growth and investment in the ‎presence of oil price shocks as in Bloom et al. (2007).‎

44 citations

Posted ContentDOI
TL;DR: In this article, economic, agricultural, and political determinants of domestic price volatility are identified and discussed based on theoretical considerations, and two approaches are followed in order to consistently estimate the impact of time-invariant variables.
Abstract: This article contributes to the ongoing discussion on the drivers of food price volatility. Based on theoretical considerations, economical, agricultural, and political determinants of domestic price volatility are identified and discussed. A dynamic panel is estimated to account for country fixed effects and persistence of volatility. Two approaches are followed in order to consistently estimate the impact of time-invariant variables. First, system GMM using levels instead of first differences and, second, a two-step IV estimation using the residuals from the system GMM estimation. Findings suggest that stocks, production, international price volatility, and governance significantly affect domestic price variability. Furthermore, improved functionality of markets and reduced transaction costs can stabilise prices. With respect to agricultural policies, public stockholding seems to be associated with less volatility, whereas trade restrictions do not enhance price stabilisation. Lastly, landlocked countries experience less variability in grain prices, while African countries have more volatile prices than countries on other continents.

44 citations

Journal Article
TL;DR: The authors reviewed recent research on industrial location, focusing on the way in which reducing barriers to trade may induce relocation of industry, which may cause industries to agglomerate in a few locations, causing divergence of the structure of integrating economies, and possibly also divergence of income levels.
Abstract: This paper reviews recent research on industrial location, focusing on the way in which reducing barriers to trade may induce relocation of industry. Integration may cause industries to agglomerate in a few locations, this causing divergence of the structure of integrating economies, and possibly also divergence of income levels. Smaller locations will have lower real wages than large ones, although in the limit — as trade costs go to zero — factor price equalisation occurs.

44 citations

Journal ArticleDOI
TL;DR: In this article, the authors investigated the non-linear adjustments of prices in the poultry marketing chain in Spain and found that price adjustments between the feed and the farmer levels are fairly symmetric and are representative of a cost-push transmission mechanism.
Abstract: The analysis of asymmetries in the price-transmission mechanism at different levels of the marketing chain provides a good indicator of market efficiency in vertically related markets. The objective of this paper is to investigate the non-linear adjustments of prices in the poultry marketing chain in Spain. The methodology used is based on the multivariate approach to specify and estimate a threshold autoregressive model. Price relationships at feed industry, producer, and retail levels are considered. Results indicate that, in the long run, price transmission is perfect and any supply or demand shocks are fully transmitted to all prices in the system. In the short run, price adjustments between the feed and the farmer levels are fairly symmetric and are representative of a cost-push transmission mechanism. On the other hand, retailers benefit from any shock, whether positive or negative, that affects supply or demand conditions when price spreads are increasing, while price behavior is closely related to competitive markets when faced with declining price spreads. [EconLit citations: C320, Q130.] © 2005 Wiley Periodicals, Inc. Agribusiness 21: 253–271, 2005.

44 citations


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Performance
Metrics
No. of papers in the topic in previous years
YearPapers
20236
20227
202115
202017
201919
201816