Demand Matters: German Wheat Market Integration 1806-1855 in a European Context
AbstractThis study analyzes annual wheat prices in 13 German cities in the years 1806 to 1855, together with wheat price series from 44 other European and American cities. The method used is a dynamic factor model, which allows for distinguishing common price uctuations on international and national levels. I find a significant increase of price synchronization between German cities and international markets, between the first and the second quarter of the 19th Century. This is probably mainly due to the increased demand for food imports in Britain and the disappearance of political barriers, as well as economies of scale and gradual improvements to existing transportation technology. Within Germany, I find increasing common price uctuations in Mannheim and Munich, which arguably refl ects a customs union effect. Tree ring records as indicators of general plant growth conditions indicate that comovement was not driven by exogenous shocks.
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Bibliographic InfoPaper provided by Center for Quantitative Economics (CQE), University of Muenster in its series CQE Working Papers with number 1110.
Length: 22 pages
Date of creation: Feb 2010
Date of revision:
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Postal: Am Stadtgraben 9, 48143 Münster, Germany
Web page: http://www1.wiwi.uni-muenster.de/cqe/
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market integration; 19th Century; dynamic factor analysis; wheat prices; Germany;
Find related papers by JEL classification:
- N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative
- N71 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - U.S.; Canada: Pre-1913
- N73 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Europe: Pre-1913
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
- F15 - International Economics - - Trade - - - Economic Integration
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
This paper has been announced in the following NEP Reports:
- NEP-AGR-2010-03-13 (Agricultural Economics)
- NEP-ALL-2010-03-13 (All new papers)
- NEP-HIS-2010-03-13 (Business, Economic & Financial History)
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- Michael Kopsidis & Nikolaus Wolf, 2012.
"Agricultural Productivity Across Prussia During the Industrial Revolution: A ThŸnen Perspective,"
0013, European Historical Economics Society (EHES).
- Kopsidis, Michael & Wolf, Nikolaus, 2012. "Agricultural Productivity Across Prussia During the Industrial Revolution: A Thünen Perspective," The Journal of Economic History, Cambridge University Press, vol. 72(03), pages 634-670, September.
- Uebele, Martin, 2011. "National and international market integration in the 19th century: Evidence from comovement," Explorations in Economic History, Elsevier, vol. 48(2), pages 226-242, April.
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