The Department of Public Policy & Administration
invites you to the research seminar with guest lecturer
Rico Ihle
Department for Agricultural Economics and Rural Development
University of Gottingen
Qualitatively Differentiated Food: Price Dynamics of Organic and Conventional Wheat in Germany
Nadine Würriehausen , Rico Ihle and Sebastian Lakner
Abstract
Organic agriculture which offers products qualitatively differentiated from conventional food has grown to an important market. Price interdependencies between both sectors have been subject to a number of changes during the last two decades which have rarely been studied. We analyze organic food markets and their interdependencies with conventional markets by focusing on wheat markets in Germany. Based on institutional market characteristics, we suggest a flexible Markov-switching asymmetric time series model. We find a pronounced temporal sequence of market phases, which differ in their asymmetric dynamics and the extent to which the organic price is influenced by the conventional price.
