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Integration and Causality in Demand: Farmed Trout in Germany

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  • In this paper, a new test for causality in demand on markets supplied by both farmed and captured fish is presented. This method is applied on markets for trout and potential substitutes imported to Germany, to identify market delineation and causality in demand. It is found that markets for small portion-sized farmed trout with white meat are relative, but not completely, separate from other fish markets, that markets for these trout are more closely linked to markets for captured fish than to farmed salmon, and that prices on partially integrated markets including trout are weakly exogenous to quantities. The modelling implication is that consistent demand analysis in the present case claims the use of ordinary demand systems. The policy implications are that although the part of the trout business operating with small freshwater ponds remains relatively unaffected by developments on other fish markets, they should pay more careful attention to markets for and management of capture fisheries.
  • Keywords: Market Integration, Causality in Demand, Captured-farmed Fish, Price Formation, Trout
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  • Nielsen, Max, Jari Setala, Jukka Laitinen, Kaija Saarni, Jarno Virtanen and Asmo Honkanen. 2006. Integration and Causality in Demand: Farmed Trout in Germany. In: Proceedings of the Thirteenth Biennial Conference of the International Institute of Fisheries Economics & Trade, July 11-14, 2006, Portsmouth, UK: Rebuilding Fisheries in an Uncertain Environment. Compiled by Ann L. Shriver. International Institute of Fisheries Economics & Trade, Corvallis, Oregon, USA, 2006. CD ROM. ISBN 0-9763432-3-1
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  • The National Oceanic & Atmospheric Administration Marine Fisheries Service, United States Department of Commerce (NOAA Fisheries); United Kingdom Department for Environment, Food and Rural Affairs (DEFRA); The United States Agency for International Development supported Aquaculture Collaborative Research and Support Program (ACRSP).
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