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Factors which affect current wholesale price were found to have an
additional positive impact on wholesale price in the next period.
Specifically, given that these factors have caused current wholesale
price to change by one cent, the estimated coefficient for Wt_^
indicates that a further change in wholesale price in the same direction
of .15 cents will follow in the next period. However, the carry-over
effect is relatively small. The elasticity of price transmission
between lagged and current wholesale price was estimated to be .145.
Wholesale price lagged one period (Wt_^) was originally included due to
first order serially correlated errors found for the wholesale price
model.
Wholesale price was found to have a negative relationship with
beginning inventories of raw-headless product (BSFFt) and imports of
raw-headless product (12lt). A million pound change in beginning
inventories and imports of 21-25 size shrimp causes wholesale price to
change in the opposite direction by .11 and .25 cents, respectively.
Total imports of all other sizes of raw-headless shrimp (0It) had an
insignificant impact on the determination of wholesale price and the
wrong sign on the coefficient. This same result was found in the
wholesale model for the 31-40 size class and in the monthly analysis.
The parameter 0It may simply be capturing the positive correlation over
time between total imports and wholesale price. Wholesale price was
anticipated to have a negative relationship with total imports, such
that as the total amount of imports increased, wholesale price would be
bid down.
Wholesale price was shown to have a positive relationship with the
costs of intermediate goods and services in wholesaling and