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Distinguishing between Equilibrium and Integration in Spatial Price Analysis Author info | Abstract | Publisher info | Download info | Related research | Statistics Barrett, Christopher B
Li, Jau Rong
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This article introduces a new spatial price analysis methodology based on maximum likelihood estimation of a mixture distribution model incorporating price, transfer cost, and trade flow data. This method permits differentiation between market integration and competitive market equilibrium and derivation of intuitive measures of intermarket tradability, competitive market equilibrium, perfect integration, segmented equilibrium, and segmented disequilibrium. One can also use these estimates to derive semiparametric measures of time-varying regime probabilities to track changing market conditions. An application to trade in soybean meal among Pacific Rim economies demonstrates the usefulness of the method. Copyright 2002 by American Agricultural Economics Association
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Article provided by American Agricultural Economics Association in its journal American Journal of Agricultural Economics .
Volume (Year): 84 (2002)
Issue (Month): 2 (May)
Pages: 292-307
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Handle: RePEc:bla:ajagec:v:84:y:2002:i:2:p:292-307Contact details of provider: Web page: http://www.blackwellpublishing.com/journal.asp?ref=0002-9092
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