Testing the Law of One Price in food markets: Evidence for Colombia using disaggregated data

Jesús Otero; Ana María Iregui

doi:10.48713/10336_10935

Testing the Law of One Price in food markets: Evidence for Colombia using disaggregated data

Jesús Otero
, Ana María Iregui

Research output: Working paper

Abstract

This paper applies stationarity tests to examine evidence of market integration for a relatively large sample of food products in Colombia. We find little support for market integration when using the univariate KPSS tests for stationarity. However, within a panel context and after allowing for cross sectional dependence, the Hadri tests provide much more evidence supporting
the view that food markets are integrated or, in other words, that the law of one price holds for most products.

Original language	English (US)
Publisher	Universidad del Rosario
Number of pages	21
DOIs	https://doi.org/10.48713/10336_10935
State	Published - Oct 2008

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth

All Science Journal Classification (ASJC) codes

Economics and Econometrics

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10.48713/10336_10935

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abstract = "This paper applies stationarity tests to examine evidence of market integration for a relatively large sample of food products in Colombia. We find little support for market integration when using the univariate KPSS tests for stationarity. However, within a panel context and after allowing for cross sectional dependence, the Hadri tests provide much more evidence supporting the view that food markets are integrated or, in other words, that the law of one price holds for most products.",

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AB - This paper applies stationarity tests to examine evidence of market integration for a relatively large sample of food products in Colombia. We find little support for market integration when using the univariate KPSS tests for stationarity. However, within a panel context and after allowing for cross sectional dependence, the Hadri tests provide much more evidence supporting the view that food markets are integrated or, in other words, that the law of one price holds for most products.

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Testing the Law of One Price in food markets: Evidence for Colombia using disaggregated data

Abstract

UN SDGs

All Science Journal Classification (ASJC) codes

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