scholarly journals Ley de precio único en el mercado español del aceite de oliva

2011 ◽  
Vol 8 (1) ◽  
pp. 37
Author(s):  
José Ángel Roldán Casas ◽  
Rafaela Dios-Palomares
Keyword(s):  
Olive Oil ◽  
Market Integration ◽  
Oil Prices ◽  
Law Of One Price ◽  
Monthly Data ◽  
Long Run ◽  
Oil Markets ◽  
The Law ◽  
Multivariate Cointegration

The aim of this paper is the study of long-run market integration of olive oil in Spain and the testing of the Law of One Price (LOP) in this market. The study is carried out using multivariate cointegration methodology and applied to monthly data on olive oil prices in Spain (1987-2001) corresponding to the regions considered by the Spanish Ministry of Agriculture, Fisheries and Food. The results show that Spanish olive oil markets are highly integrated with the Northeast being the leading market. However, perfect integration cannot be accepted.

scholarly journals DOES THE LAW OF ONE PRICE (LOP) HOLDS IN THE INTERNATIONAL BARLEY MARKETS

2021 ◽  
Vol 21 (4) ◽  
pp. 251-266
Author(s):  
Sanusi Mohammed Sadiq ◽  
P I Singh ◽  
M M Ahmad
Keyword(s):  
Empirical Evidence ◽  
Market Integration ◽  
Time Series Data ◽  
Impulse Response Function ◽  
Law Of One Price ◽  
Series Data ◽  
Economic Market ◽  
Causality Test ◽  
Long Run ◽  
The Law

A price time-series data of barley for a period of 49 years (1970-2019) sourced from the FAO database was used to determine the horizontal market integration of barley among some selected major market players in barley trade in the world. The chosen markets are Australia, Canada, Iran, Turkey and the USA based on the availability of up-to-date large span data. The collected data were analyzed using inferential statistics- unit root tests, co-integration tests, unrestricted vector autoregressive model, Granger causality test and impulse response function. The empirical evidence showed that the law of one price (LOP) exists among the selected markets i.e. there is perfect price communication among the markets in the long run, thus highly integrated. Besides, Australian and Canadian markets established a long-run equilibrium, thus have a stable price in the long run. Furthermore, the import and export hubs of barley in the trade are Canadian, USA and Turkey markets while Iranian and Australian markets are large consumer markets. The empirical evidence showed Canadian and USA markets to be the major players in the trade while the Australian market is a follower in the trade. All the selected markets have promising future prices with a little inflationary trend which will owe to supply fluctuation. The reinforcement of physical infrastructure, the use of ICTs and well-defined consistent agricultural policy/market initiatives would thus lead to the global creation of a single uniform economic market for barley.

scholarly journals Co-integration of Groundnut Markets in India with Special Reference to Karnataka State

2020 ◽  
pp. 14-22
Author(s):  
Akshata Nayak ◽  
H. Lokesha ◽  
C. P. Gracy
Keyword(s):  
Market Integration ◽  
Unit Root Test ◽  
Groundnut Oil ◽  
Step Method ◽  
Causality Test ◽  
Price Series ◽  
Long Run ◽  
Oil Markets ◽  
Integration Test ◽  
The Government

Aims: Market integration is an indicator that explains how different markets are related to each other. The main aim of the paper is to examine the market integration of groundnut seed and oil markets in India.  Study Design: This paper examines the market integration in six major groundnut oil markets and four groundnut pod markets using monthly wholesale prices of groundnut. Methodology: Test for stationarity was done using Dickey Fuller Test. The Engle-Granger two-step method is used to test for co-integration between the variables. Johansen co-integration test was applied to analyse the long run equilibrium among the groundnut markets. Results: Unit root test indicated that the price series in each location are non-stationary at their levels and stationary at their first differences. The Granger causality test indicated that all the market pairs are well co-integrated, some of the markets have bidirectional relationship and some have unidirectional relationship at five per cent level of significance, which implies that the groundnut prices have an equally long run association. Conclusion: In overall, the study suggests that regional markets for groundnut in India are strongly co-integrated. Therefore, the Government can stabilize the price in one key market and rely on commercialization to produce a similar outcome in other markets. This reduces the cost of stabilization considerably.

scholarly journals Spatial Price Transmission of Milk Prices Among the Visegrad Countries

2017 ◽  
Vol 6 (2) ◽  
pp. 79-83 ◽  
Author(s):  
Lucia Vargova ◽  
Miroslava Rajcaniova
Keyword(s):  
Raw Milk ◽  
Law Of One Price ◽  
Price Transmission ◽  
Open Market ◽  
Monthly Data ◽  
Cointegration Tests ◽  
Causality Tests ◽  
Producer Prices ◽  
The Law ◽  
Visegrád Countries

Abstract When trading with homogenous goods, consumers are not able to distinguish between individual goods and thus not willing to pay a higher price, if the same product is available for lower price. This leads to an interesting effect, when prices of homogenous goods in different locations in an open market tend to get closer. It is the result of the so-called Law of One Price. Because of the Law of One Price, producers are affected not only by vertical price transmission, but also horizontally. The aim of this paper is to assess the linkage and patterns among the prices of cow’s raw milk in the V4 countries. We apply the price transmission methodology, such as unit root tests, cointegration tests, error correction models, and Granger causality tests. Monthly data for producer prices of raw milk are used, covering the period from January 2005 to June 2017. Our results confirm the existence of the Law of One Price when milk producer prices in different locations are co-integrated.

Common Markets Measuring Price Integration in European Agricultural Markets

2006 ◽  
Author(s):  
Crina Viju ◽  
James Nolan ◽  
William A. Kerr
Keyword(s):  
Market Integration ◽  
The European Union ◽  
Monthly Data ◽  
Agricultural Prices ◽  
Eu Integration ◽  
Long Run ◽  
Short Run ◽  
The Individual ◽  
Common Markets ◽  
The Eu

The accession of Austria, Finland and Sweden to the European Union (EU) is assessed from the perspective of market integration in key agricultural sectors. An empirical investigation is conducted using monthly data for two periods: from 1975:01-1994:12 (the pre-EU period) and 1995:01-2004:12 (post-EU period). The existence of market integration both within the countries and within the EU is tested using time-series methods. A long-run equilibrium between prices for the same good in different markets does not exclude the possibility of short-run deviations in the individual data, so part of this analysis consists of estimating an econometric model (error correction) to uncover long-run effects of price deviations. Only a subset of agricultural prices moves together after EU integration.     Full text available at: https://doi.org/10.22215/rera.v2i1.164

Market integration and convergence to the law of one price in the North American onion markets

Agribusiness ◽  
2008 ◽  
Vol 24 (2) ◽  
pp. 177-191 ◽  
Author(s):  
Dwi Susanto ◽  
C. Parr Rosson ◽  
Flynn J Adcock
Keyword(s):  
North American ◽  
Market Integration ◽  
Law Of One Price ◽  
The North ◽  
The Law

Global energy and geopolitical risk: behavior of oil markets

2019 ◽  
Vol 14 (2) ◽  
pp. 358-371 ◽  
Author(s):  
Abdullah Alqahtani ◽  
Michael Taillard
Keyword(s):  
Allocative Efficiency ◽  
Impulse Response Function ◽  
Oil Prices ◽  
Causality Test ◽  
Market Pricing ◽  
Content Type ◽  
Distributed Lag ◽  
Long Run ◽  
Oil Markets ◽  
The Impact

Purpose The question being assessed is whether changes in the degree of global geopolitical risk (GPR), as defined by the framework developed by Iacoviello (2018), can be used to improve allocative efficiency, thereby increasing investment returns on oil commodities. Design/methodology/approach Using the linear and nonlinear model, this paper analyzes the impact of GPR on returns of oil prices (BRENT, WTI and Organization of Petroleum Exporting Countries), as well as the short- and long-run relationship between GPR and oil prices. Findings The results of the impulse response function indicates that oil prices do not respond to shocks in GPR. The results of the Granger causality test show that oil returns are not caused by GPR. The regression analysis and autoregressive distributed lag results show that there is no significant impact of GPR on the returns of oil. Originality/value This is unique among the literature in that it identifies and isolates the relationship between GPR and oil market pricing. Insight into the lag in market response and the degree to which GPR can be used to estimate oil prices using curvilinear models are derived from the analysis.

Sign in / Sign up

Export Citation Format

Share Document