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Mark-up volatility in Food Value Chains: Evidence from France and Italy

Author

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  • Maria Garrone
  • Jo Swinnen
Abstract
This paper estimates firm-level mark-ups and their volatility along the agri-food value chain using the methodology of De Loecker and Warzynski (2012). We estimate mark-ups of farmers, processors, wholesalers and retailers, how they change over time, and their volatility. We use detailed micro-level data from companies from Italy and France for the period 2006-2014. We find that farmers have a significantly higher volatility of mark-ups than other agents in the agri-food value chain, such as food processors, wholesalers and retailers. The volatility is negatively related with firm size in all sectors, and especially in agriculture.

Suggested Citation

  • Maria Garrone & Jo Swinnen, 2018. "Mark-up volatility in Food Value Chains: Evidence from France and Italy," Working Papers of Department of Economics, Leuven 626586, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    • Handle: RePEc:ete:ceswps:626586
    Note: paper number LICOS Discussion paper series 403/2018
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