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On the interdependence of Finnish and Swedish newsprint prices

Author

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  • Juuso Vataja

    (University of Vaasa, Finland)

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.

Suggested Citation

  • Juuso Vataja, 2001. "On the interdependence of Finnish and Swedish newsprint prices," Finnish Economic Papers, Finnish Economic Association, vol. 14(2), pages 120-130, Autumn.
  • Handle: RePEc:fep:journl:v:14:y:2001:i:2:p:120-130
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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