An Empirical Study of Price Correlations: 1. How Should Spatial Interactions between Interdependent Markets be Measured?

B Roehner
Additional contact information
B Roehner: Laboratoire de Physique Théorique et Hautes Énergies, Université Paris VII, 75251 Paris Cedex 05, France

Environment and Planning A, 1989, vol. 21, issue 2, 161-173

Abstract: Price fluctuations are known to be rather chaotic and unpredictable. However, when these fluctuations are compared at different marketplaces some regular patterns appear. The precise nature of such regularities and what can be learned from them about the internal structure of an economic system are the purpose of this series of two papers. In this first paper the evolution of an economic system is analysed, namely in Germany during the period of its economic integration, that is to say during the 19th century. Different statistical measures are compared: the price ratio, the price correlations, the price dispersion, in order to characterise the increasing interdependence of economic activity centres. It is shown that this interdependence increases for every commodity according to a specific trend. Last, in order to link these results with the economic and political history of Germany some data are presented pertaining to the development of its domestic trade during the 19th century.

Date: 1989
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1068/a210161 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:envira:v:21:y:1989:i:2:p:161-173

DOI: 10.1068/a210161

Access Statistics for this article

More articles in Environment and Planning A
Bibliographic data for series maintained by SAGE Publications ().