Multivariate Cointegration Tests and the Law of One Price in International Wheat Markets

1992 ◽  
Vol 14 (1) ◽  
pp. 117 ◽  
Author(s):  
Barry K. Goodwin
Keyword(s):  
Law Of One Price ◽  
Cointegration Tests ◽  
The Law ◽  
Multivariate Cointegration

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.

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.

A proposition on short-run departures from the law-of-one-price

1982 ◽  
Vol 17 (1) ◽  
pp. 51-60 ◽  
Author(s):  
Mario I. Blejer ◽  
Arye L. Hillman
Keyword(s):  
Law Of One Price ◽  
Short Run ◽  
The Law
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