Summary

We study price transmission processes within EU pork markets after the implementation of the EU single market in 1993. We compare results derived from nonparametric regressions with those obtained using alternative nonlinear threshold models. Both techniques support the hypothesis that prices are transmitted across spatially separate EU pig markets and provide evidence for asymmetric price adjustments. They also suggest the existence of a range of price differentials where equilibrating price adjustments are less intense. Nonparametric techniques often suggest a higher degree of price transmission than that implied by threshold models