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Are Australian wholesale vegetable markets LOOPy?

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  • Nicols, Panos
  • Ahmadi-Esfahani, Fredoun Z.

Abstract

Literature 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.

Suggested Citation

  • Nicols, Panos & Ahmadi-Esfahani, Fredoun Z., 2009. "Are Australian wholesale vegetable markets LOOPy?," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 47618, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare09:47618
    DOI: 10.22004/ag.econ.47618
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    References listed on IDEAS

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    Keywords

    Demand and Price Analysis; Marketing;

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