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Estimating Marketing Margin Cost Components: An Application of Simulation to Products of the Vegetable Oil Industry*

Published online by Cambridge University Press:  28 April 2015

R. McFall Lamm Jr.
R. McFall Lamm Jr.*
Affiliation:
Virginia Polytechnic Institute andState University, Blacksburg, Virginia
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Extract

While many methods have been proposed for evaluating agricultural processing market efficiency, estimation of product marketing margins has received the most attention and direct research effort. Despite this fact, there are many technical and statistical problems associated with both the performance of marketing analyses and utilization of margin reports. Most early marketing margin studies either ignored or circumvented these problems, concentrating on estimating absolute magnitudes of marketing margins over time. Marketing margin studies performed in the last few years have continued, in varying degrees, to ignore these and other problems implicit in the analysis. Relative levels of marketing margins over time may provide some insight into marketing efficiency, but those of various cost components of the marketing margin over time appear to give even more suitable indications of changing market performance.

Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 8 , Issue 1 , July 1976 , pp. 109 - 113
Copyright
Copyright © Southern Agricultural Economics Association 1976

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Footnotes

*

This paper is based on research performed under contract for the Economic Research Service, USDA. The views presented here do not necessarily reflect those of the Economic Research Service. The author is indebted to William T. Boehm, J. Paxton Marshall, and two anonymous referees who made useful comments on drafts of this paper.

References

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