|
|
|
|
| |
|
|
Li, Jau-Rong; Barrett, Christopher B.. |
This paper introduces a new market analysis methodology based on maximum likelihood estimation of a mixture distribution model incorporating price, transfer cost, and trade flow data. Not only does this method obviate statistical problems associated with conventional price analysis methods, it also permits differentiation between market integration and competitive market equilibrium. The model generates estimates of the frequency of alternative regimes, combinations of which provide useful, intuitive measures of intermarket tradability, competitive market equilibrium, perfect integration, segmented equilibrium, and segmented disequilibrium. An application to trade in soybean meal among Pacific Rim economies demonstrates the usefulness of the method. |
Tipo: Working or Discussion Paper |
Palavras-chave: International trade; Law of one price; Market integration; Spatial equilibrium; International Relations/Trade. |
Ano: 1999 |
URL: http://purl.umn.edu/14607 |
| |
|
|
Barrett, Christopher B.; Li, Jau-Rong; Bailey, DeeVon. |
This study uses a new market analysis methodology to examine price and trade relationships in eight Pacific Rim factor and product markets central to the Canadian and U.S. pork industries. The new method enables direct estimation of the frequencies with which a variety of market conditions occur, including competitive equilibrium, tradability, and segmented equilibrium. While extraordinary profit opportunities emerge episodically in a few niche markets, the vast majority of the markets studies are highly competitive- exhibiting zero estimated marginal profits to spatial arbitrage at monthly frequency- and internationally contestable. With a few notable exceptions due primarily to nontariff barriers, and despite significant remaining tariffs in some niches,... |
Tipo: Journal Article |
Palavras-chave: Demand and Price Analysis. |
Ano: 2000 |
URL: http://purl.umn.edu/30829 |
| |
|
| |
|
|
|