Market Integration and Transport Costs in France 1825-1903: A Threshold Error Correction Approach to the Law of One Price

Research output: Contribution to journal › Journal article › Research › peer-review

Standard

Market Integration and Transport Costs in France 1825-1903 : A Threshold Error Correction Approach to the Law of One Price. / Ejrnæs, Mette; Persson, Karl Gunnar.

In: Explorations in Economic History, Vol. 37, No. 2, 2000, p. 149-173.

Research output: Contribution to journal › Journal article › Research › peer-review

Harvard

Ejrnæs, M & Persson, KG 2000, 'Market Integration and Transport Costs in France 1825-1903: A Threshold Error Correction Approach to the Law of One Price', Explorations in Economic History, vol. 37, no. 2, pp. 149-173. https://doi.org/10.1006/exeh.2000.0733

APA

Ejrnæs, M., & Persson, K. G. (2000). Market Integration and Transport Costs in France 1825-1903: A Threshold Error Correction Approach to the Law of One Price. Explorations in Economic History, 37(2), 149-173. https://doi.org/10.1006/exeh.2000.0733

Vancouver

Ejrnæs M, Persson KG. Market Integration and Transport Costs in France 1825-1903: A Threshold Error Correction Approach to the Law of One Price. Explorations in Economic History. 2000;37(2):149-173. https://doi.org/10.1006/exeh.2000.0733

Author

Ejrnæs, Mette ; Persson, Karl Gunnar. / Market Integration and Transport Costs in France 1825-1903 : A Threshold Error Correction Approach to the Law of One Price. In: Explorations in Economic History. 2000 ; Vol. 37, No. 2. pp. 149-173.

Bibtex

@article{4c62034074c611dbbee902004c4f4f50,
title = "Market Integration and Transport Costs in France 1825-1903: A Threshold Error Correction Approach to the Law of One Price",
abstract = "This article argues that the appropriate standard for the analysis of commodity market integration is the transport cost adjusted law of one price. A threshold error correction model that incorporates that property is developed and applied to French wheat prices in the 19th century. This type of modeling acknowledges the fact that error corrections only take place when price differentials between markets exceed transport costs. The method used produces estimates of implied transport costs, which are quite close to observed costs, and generates more accurate estimates of the adjustment speed to equilibrium price differentials between markets. Unlike previous studies this article shows that French wheat markets were well integrated by the middle of the 19th century",
author = "Mette Ejrn{\ae}s and Persson, {Karl Gunnar}",
note = "JEL Classification: N73, C51",
year = "2000",
doi = "10.1006/exeh.2000.0733",
language = "English",
volume = "37",
pages = "149--173",
journal = "Explorations in Economic History",
issn = "0014-4983",
publisher = "Academic Press",
number = "2",

}

RIS

TY - JOUR

T1 - Market Integration and Transport Costs in France 1825-1903

T2 - A Threshold Error Correction Approach to the Law of One Price

AU - Ejrnæs, Mette

AU - Persson, Karl Gunnar

N1 - JEL Classification: N73, C51

PY - 2000

Y1 - 2000

N2 - This article argues that the appropriate standard for the analysis of commodity market integration is the transport cost adjusted law of one price. A threshold error correction model that incorporates that property is developed and applied to French wheat prices in the 19th century. This type of modeling acknowledges the fact that error corrections only take place when price differentials between markets exceed transport costs. The method used produces estimates of implied transport costs, which are quite close to observed costs, and generates more accurate estimates of the adjustment speed to equilibrium price differentials between markets. Unlike previous studies this article shows that French wheat markets were well integrated by the middle of the 19th century

AB - This article argues that the appropriate standard for the analysis of commodity market integration is the transport cost adjusted law of one price. A threshold error correction model that incorporates that property is developed and applied to French wheat prices in the 19th century. This type of modeling acknowledges the fact that error corrections only take place when price differentials between markets exceed transport costs. The method used produces estimates of implied transport costs, which are quite close to observed costs, and generates more accurate estimates of the adjustment speed to equilibrium price differentials between markets. Unlike previous studies this article shows that French wheat markets were well integrated by the middle of the 19th century

U2 - 10.1006/exeh.2000.0733

DO - 10.1006/exeh.2000.0733

M3 - Journal article

VL - 37

SP - 149

EP - 173

JO - Explorations in Economic History

JF - Explorations in Economic History

SN - 0014-4983

IS - 2

ER -

ID: 149515