Market Integration, Efficiency of Arbitrage, and Imperfect Competition: Methodology and Application to U.S. Celery

Richard J. Sexton, Catherine Kling and Hoy Carman

No 270897, 1990 Annual meeting, August 5-8, Vancouver, Canada from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: This paper develops and applies a methodology to test for efficiency in interregional commodity arbitrage. The methodology is empirically manifest as a switching regression model with three regimes: efficient arbitrage, relative shortage, and relative glut. Results from application of the model to U.S. celery marketing indicate significant departures from efficient arbitrage for both California and Florida celery.

Keywords: Crop Production/Industries; Demand and Price Analysis (search for similar items in EconPapers)
Pages: 15
Date: 1990-08-05
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Related works:
Journal Article: Market Integration, Efficiency of Arbitrage, and Imperfect Competition: Methodology and Application to U.S. Celery (1991)
Working Paper: Market Integration, Efficiency of Arbitrage, and Imperfect Competition: Methodology and Application to U.S. Celery (1991)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea90:270897

DOI: 10.22004/ag.econ.270897

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