149
where the values in parentheses are the standard errors. All but one of
the coefficient estimates are of the anticipated sign.
Current retail price (Rt) was found to be positively related to
current wholesale price (Wt) and retail price lagged one period (Rt_^).
A one cent change in current wholesale price caused current retail price
to change in the same direction by .48 cents. This represents an
elasticity of price transmission of .34. Current retail price was thus
found to be inelastic to changes in current wholesale price. A one cent
change in retail price was shown to have a further positive effect on
retail price in the next period. As in the case of retail price
estimation for the 31-40 size shrimp, Rt_^ was included to account for
first order serially correlated error terms in the retail model.
However, the coefficient for Rt_j can be interpreted such that factors
which cause a one cent change in retail price cause further change in
retail price in the next period of .71 cents. This lagged effect for
the 21-25 size class is slightly greater than the comparable value of
.63 found for the 31-40 size class. In terms of the elasticity of price
transmission between lagged and current retail price, a one percent
change in retail price has a .70 percent change in retail price next
period in the same direction.
Estimates for two of the three retail demand shifters included in
the retail demand model were of the anticipated sign. However, the
indicated impact on retail price was found to be small. A one million
pound change in total retail supply of raw-headless shrimp changes
retail price in the opposite direction by .36 cents. This represents a
flexibility estimate of -.058. This is in contrast to the insignifiance
found for the same variable in the 31-40 size class retail model. A one