Are Australian wholesale vegetable markets LOOPy?
AbstractLiterature regarding the pricing efficiency of Australian wholesale vegetable markets is very limited. The objective of this paper is to test whether or not vegetable products traded in these markets are priced efficiently and satisfy the law of one price (LOOP). To that end, the price relationships between Adelaide and Melbourne markets are tested, using the Johansen cointegration approach, Granger causality and impulse response functions. The empirical findings do not appear to satisfy the LOOP. Policy implications of the analysis are explored.
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Bibliographic InfoPaper provided by Australian Agricultural and Resource Economics Society in its series 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia with number 47618.
Date of creation: 2009
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law of one price; Australian wholesale vegetable markets; pricing efficiency; Demand and Price Analysis; Marketing;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-03-28 (All new papers)
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