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Table 3 Key parameters of linear VECM specification for cointegrated price pairs

From: Vertical price transmission in Swiss dairy and cheese value chains

Tested variable pair   Coint. vector Adjustment parameters Model fit Asymmetry test
p1 p2 Lags PT elast. Const. αp1 αp2 Adj. R2 p1-equ. Adj. R2 p2-equ. αp1+ = αp1- αp2+ = αp2-
Dairy chain
 W_but R_but 4 0.79 0.52 0.04* 0.19*** 0.00 0.23 n.s. n.s.
Cheese chain
 P_gru R_gru 4 0.35 − 5.44 − 0.16*** 0.02 (n.s.) 0.28 0.47 n.s. n.s.
 E_gru R_gru 4 1.94 − 8.37 − 0.10*** 0.00 (n.s.) 0.24 0.51 n.s. n.s.
Organic chain
 P_org R_milk_org 2 − 1.48 − 3.53 − 0.03 (n.s.) 0.08*** 0.68 0.09 n.s. n.s.
 P_org R_but_org 2 − 0.89 − 3.17 − 0.04 (n.s.) 0.12*** 0.68 0.18 n.s. n.s.
  1. Model with prices in logarithms, incl. 11 seasonal dummies, lag selection acc. to AIC. Split pos. and neg. ECT not listed here, as none of the differences proved significant (see Additional file 1)
  2. (n.s.) not significant at 10% level, ECT error correction term
  3. */**/*** represent 10/5/1% significance level