Domestic market integration and the law of one price in Brazil
| Autor: | Carlos Góes, Troy Matheson |
|---|---|
| Rok vydání: | 2016 |
| Předmět: |
Economic integration
Producer price index Economics and Econometrics Mid price Monetary economics Domestic market 0502 economics and business Econometrics Economics Market price Price level 050207 economics General Environmental Science 050205 econometrics Western hemisphere 05 social sciences Factor price Convergence (economics) International economics Panel analysis Price index Law of one price General Earth and Planetary Sciences Unit root Law of supply Limit price |
| Zdroj: | Applied Economics Letters. 24:284-288 |
| ISSN: | 1466-4291 1350-4851 |
| DOI: | 10.1080/13504851.2016.1184220 |
| Popis: | This paper presents the first assessment domestic market integration in Brazil using the law of one price. The law of one price is tested using two panel unit root methodologies and a unique data set comprising price indices for 51 products across 11 metro-areas. We find that the law of one price holds for most tradable products and, not surprisingly, non-tradable products are found to be less likely to satisfy the law of one price. While these findings are consistent with evidence found for other countries, price convergence occurs very slowly in Brazil, suggesting relatively limited domestic market integration. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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