Análise da transmissão de preços no setor sucroalcooleiro brasileiro

The purpose of this paper is the analysis of price transmission process in the sugarcane sector, establishing a relationship between the prices studied in order to explain the variations and the influence of each product in the establishment of its own and other products’ value, thus verifying the applicability of Law of One Price within that sector. In doing so, a quantitative research of secondary data was carried, using series of prices of sugarcane, hydrated ethanol and sugar in the state of Sao Paulo from February 1999 to September 2010. The data were analyzed according to the Vector Autoregressive model. The results found show a strong link among these products, highlighting the case of hydrated ethanol, which strongly influences the prices of the other ones, but does not suffer any influence from fluctuations in the prices of sugarcane and sugar.