Price transmission between maize and poultry product markets in the Visegrád Group countries: What is more nonlinear, egg or chicken?

Abstract

In this article, we present applied research in the field of price transmission modelling with the generalised additive model. In line with recent studies on nonlinear time series models for price transmission, we introduce a nonparametric technique of generalised additive modelling to provide evidence of nonlinear patterns in price linkages and compare the degree of nonlinearity in price transmission between feed maize and poultry product markets in the Visegrád Group countries. The results of our empirical approach contribute to knowledge about market competitiveness in the Visegrád Group countries and provide information to policymakers.

Keywords

• generalised additive model
• nonlinearity
• poultry markets
• time series