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Price Founded Tests For Market Integration: Fish Markets In France

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  • Asche, Frank
  • Gordon, Daniel V.
  • Hannesson, Rognvaldur

Abstract

This paper discuss the relationship between traditional parametric tests for market integration such as causuality tests and tests of the Law of One Price and cointegration tests for market integration. We show that cointegration tests are a natural extension of the traditional methods taking into account that prices are nonstationary, and not an alternative approach. By using the Johansen test, one can both test for causality and provided that prices are cointegrated, for the Law of One Price. An empirical analysis is provided for the whitefish market in France.

Suggested Citation

  • Asche, Frank & Gordon, Daniel V. & Hannesson, Rognvaldur, 1998. "Price Founded Tests For Market Integration: Fish Markets In France," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20904, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea98:20904
    DOI: 10.22004/ag.econ.20904
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    References listed on IDEAS

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    Cited by:

    1. Anders, Q. Nyrud, 2002. "Integration in the Norwegian pulpwood market: domestic prices versus external trade," Journal of Forest Economics, Elsevier, vol. 8(3), pages 213-225.
    2. Nga, Nguyen Thi Duong & Lantican, Flordeliza A., 2009. "Spatial Integration of Rice Markets in Vietnam," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 6(1), pages 1-16, June.

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