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On the interdependence of Finnish and Swedish newsprint prices

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  • Juuso Vataja

    (University of Vaasa, Finland)

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    Abstract

    This study explores the interdependence of Finnish and Swedish newsprint prices. Since newsprint represents a very homogenous product, the law of one price (LOP) is assumed to hold between the Finnish and the Swedish common currency newsprint prices in the long run. The results support the LOP hypothesis, and the Swedish prices are found to be weakly exogenous, implying that the Finnish prices follow fundamentally the Swedish ones in the long run. Moreover, deviations from the LOP are found to be economically relatively small and short-lived.

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    Bibliographic Info

    Article provided by Finnish Economic Association in its journal Finnish Economic Papers.

    Volume (Year): 14 (2001)
    Issue (Month): 2 (Autumn)
    Pages: 120-130

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    Handle: RePEc:fep:journl:v:14:y:2001:i:2:p:120-130

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