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Spatial Market Integration In The Presence Of Threshold Effects

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  • Goodwin, Barry K.
  • Piggott, Nicholas E.

Abstract

Threshold cointegration models are used to evaluate spatial price dynamics among regional corn and soybean markets in North Carolina. Thresholds, reflecting the influences of transactions costs, are confirmed and spatial integration is strongly supported. Results indicate that equilibrating adjustments to market shocks are generally complete in two weeks.

Suggested Citation

  • Goodwin, Barry K. & Piggott, Nicholas E., 1999. "Spatial Market Integration In The Presence Of Threshold Effects," 1999 Annual meeting, August 8-11, Nashville, TN 21489, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea99:21489
    DOI: 10.22004/ag.econ.21489
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