Inter-Regional Price Convergence and Market Integration in Russia

2005 ◽  
Vol 11 (4) ◽  
pp. 483-483 ◽  
Author(s):  
Konstantin Gluschenko
Keyword(s):  
Market Integration ◽  
Price Convergence

scholarly journals Agricultural Land Price Convergence: Evidence from Polish Provinces

Agriculture ◽  
2020 ◽  
Vol 10 (5) ◽  
pp. 183 ◽  
Author(s):  
Mateusz Tomal ◽  
Agata Gumieniak
Keyword(s):  
Market Integration ◽  
Fixed Effects ◽  
Agricultural Land ◽  
Land Market ◽  
Price Convergence ◽  
Present Value ◽  
Land Price ◽  
Land Prices ◽  
Long Run ◽  
Agricultural Land Prices

This research deals with the problem of agricultural land market efficiency using the spatial market integration concept as well as the present value (PV) model. Empirically, it aims to test the convergence of agricultural land prices across Polish provinces. In order to check the law of one price (LOP), good-quality, medium-quality and bad-quality land sales markets are examined separately. Furthermore, this study is complemented by an analysis of the drivers behind agricultural land price convergence. The main method of testing price convergence is the log t regression. The latter was performed in two configurations, i.e., based on trend components of time series extracted using the Hodrick–Prescott filter and the Hamilton filter. Additionally, traditional β- and σ-convergence tests were applied. The obtained results indicated that agricultural land prices tend to converge in relative terms, which means that the provinces share a common long-run growth path. This finding and estimates of traditional convergence tests prove the increasing integration in the agricultural land market in Poland. There is no evidence, however, to support the conclusion that the absolute version of the long-run LOP holds. Moreover, using dynamic fixed effects models, it was identified that for good-, medium- and bad-quality land prices almost the same drivers of convergence apply. The only differences concern the strength of the influence of independent variables on prices of farmland of various types. Additionally, bad-quality land prices are the only ones which are affected by livestock density. Furthermore, estimates of the present value model finally confirmed that the agricultural land sales market in Poland cannot be considered as efficient.

Late Nineteenth-Century Anglo-American Factor-Price Convergence: Were Heckscher and Ohlin Right?

1994 ◽  
Vol 54 (4) ◽  
pp. 892-916 ◽  
Author(s):  
Kevin O'Rourke ◽  
Jeffrey G. Williamson
Keyword(s):  
Nineteenth Century ◽  
Market Integration ◽  
Commodity Prices ◽  
Commodity Price ◽  
The United States ◽  
Factor Price ◽  
Late Nineteenth Century ◽  
Price Convergence ◽  
Late Nineteenth ◽  
Anglo American

Due primarily to transport improvements, commodity prices in Britain and the United States tended to converge between 1870 and 1913. Heckscher and Ohlin, writing in 1919 and 1924, thought that these events should have contributed to factor-price convergence. It turns out that Heckscher and Ohlin were right: a significant share of the Anglo-American real-wage convergence was due to commodity-price convergence. It appears that this late nineteenth-century episode was the dramatic start of world-commodity and factor-market integration that continues today.

Climate change, weather shocks, and price convergence in pre-industrial Germany

2021 ◽  
Author(s):  
Hakon Albers ◽  
Ulrich Pfister
Keyword(s):  
Climate Change ◽  
Seventeenth Century ◽  
Population Growth ◽  
Market Integration ◽  
Western Europe ◽  
Price Convergence ◽  
High Quality ◽  
Weather Shocks ◽  
River Transport ◽  
North Western

Abstract Market integration of European inland regions such as Germany caught up on North-Western Europe from the seventeenth century onwards. As many studies rely on grain prices and the pre-industrial era was a period of climate change, a relevant question is in how far changing weather shocks impact on the measurement of convergence trends. We create a new high-quality grain price dataset and apply four methodologies to quantify market integration robust to weather shocks and climate change. Population growth and river transport turn out as plausible explanations for price convergence rather than climate change.

scholarly journals Corn Market Integration in Porfirian Mexico

2005 ◽  
Vol 65 (1) ◽  
pp. 103-128 ◽  
Author(s):  
RAFAEL DOBADO ◽  
GUSTAVO A. MARRERO
Keyword(s):  
Economic Growth ◽  
Economic History ◽  
Market Integration ◽  
Agricultural Sector ◽  
Mexican Revolution ◽  
Price Convergence ◽  
Domestic Markets ◽  
History Of ◽  
Convergence Model ◽  
Staple Crop

This article aims to cover an important aspect of the economic history of Porfirian Mexico: the integration of agricultural domestic markets. Because corn was the staple crop of the commercial agricultural sector, it becomes the protagonist of this story. Panel techniques are applied to a price-convergence model. Although still unfinished on the eve of the Mexican Revolution, corn market integration substantially accelerated during the Porfiriato and ended up further integrated than estimated by Kuntz. Railroads were not only indispensable to the economic growth of Mexico, but also played a key role in the process of corn market integration.

scholarly journals Pharmaceutical Price Convergence In The EU: Preliminary Results From The Panel Data Unit Root Test

2011 ◽  
Vol 9 (10) ◽  
pp. 35 ◽  
Author(s):  
Aysegul Timur
Keyword(s):  
Panel Data ◽  
Unit Root ◽  
Market Integration ◽  
Unit Root Test ◽  
Pharmaceutical Market ◽  
Price Convergence ◽  
Preliminary Results ◽  
Cross Country ◽  
Price Differences ◽  
The Eu

This paper explores the case of market integration and price convergence in the European Union, specifically in the pharmaceutical industry. The EU has been experiencing market integration since 1992, through the removal of trade barriers, the establishment of a single market, and the reduction of exchange rate volatility. In addition, there have been several structural reforms in product markets designed to increase competition, monitor cross-country price differences and increase transparency. One anticipated effect of market integration is price convergence, because of the reduced potential for price discrimination across the EU. This paper is aimed to analyze market integration and price convergence in the European pharmaceutical market, which is the fifth largest industry in the EU. Since 1985, many EU directives have been adopted to achieve a single EU-wide pharmaceutical market, with the aim of enhancing the quality of life for European citizens and the European pharmaceutical industrys competitiveness and research and development capability. Using annual 19942003 IMS Health panel data from five EU countries on prices of drugs used to treat cardiovascular disease and controlling drug and market characteristics; this paper examines how the integration process has affected cross-country drug price dispersion in the EU through the preliminary results from the panel data unit root test. Finally, the results show some evidence of price convergence in the pharmaceutical market, with long term price differences arising from country fixed effects.

scholarly journals Price convergence patterns across U.S. States

2019 ◽  
Vol 66 (2) ◽  
pp. 187-201
Author(s):  
Christina Christou ◽  
Juncal Cuñado ◽  
Rangan Gupta
Keyword(s):  
Monetary Policy ◽  
Market Integration ◽  
Price Convergence ◽  
State Variables ◽  
Policy Decisions ◽  
Paper Point ◽  
Convergence Clubs ◽  
Low Degree ◽  
Price Deflator ◽  
The U.S

This study examines the convergence patterns of prices across 50 U.S. states over the period 1960-2007, by applying the convergence algorithm developed by Peter C. B. Phillips and Donggyu Sul (2007). The empirical findings suggest the rejection of full convergence across the 50 U.S. states? prices, and the presence of 11 subgroups, or convergence clubs. The main implications of this paper point to the low degree of market integration across the U.S. states, the limitations of using a unique national price deflator to calculate real U.S. state variables, and the different effects that national monetary policy decisions will have on U.S. state prices.

scholarly journals European Goods Market Integration in the Very Long Run: From the Black Death to the First World War

2021 ◽  
pp. 1-33
Author(s):  
Giovanni Federico ◽  
Max-Stephan Schulze ◽  
Oliver Volckart
Keyword(s):  
Fifteenth Century ◽  
Market Integration ◽  
Western Europe ◽  
Napoleonic Wars ◽  
Price Convergence ◽  
Data Set ◽  
Long Run ◽  
The First World War ◽  
Goods Market ◽  
Late Fifteenth

This paper examines price convergence and changes in the efficiency of wheat markets, covering the period from the mid-fourteenth to the early twentieth century and most of Europe. The analysis is based on a new data set of prices from almost 600 markets. Unlike previous research, we find that convergence was a predominantly pre-modern phenomenon. It started in the late fifteenth century, advanced rapidly until the beginning of the seventeenth century when it temporarily stalled, resumed after the Thirty Years’ War, and accelerated after the Napoleonic Wars in response to trade liberalization. From the late 1840s, convergence petered out and turned into divergence after 1875 as policy decisions dominated technological change. Our results point to the ‘Little Divergence’ between North-Western Europe and the rest of the continent as starting about 1600. Long-term improvements in market efficiency began in the early sixteenth century, with advances over time being as uneven as in price convergence. We trace this to differential institutional change and the non-synchronous spread of modern media and systems of information transmission that affected the ability of merchants to react to news.

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