Testing the law of one price in food markets: evidence for Colombia using disaggregated data

Ana Iregui and Jesus Otero

No 5102, Documentos de Trabajo from Universidad del Rosario

Abstract: This paper applies stationarity tests to examine evidence of market integration for a relatively large sample of food products in Colombia. We fi nd little support for market integration when using the univariate KPSS tests for stationarity. However, within a panel context and after allowing for cross sectional dependence, the Hadri tests provide much more evidence supporting the view that food markets are integrated or, in other words, that the law of one price holds for most products.

Keywords: Law of one price; panel stationarity test; disaggregated pricedata, cross section dependence; Colombia. (search for similar items in EconPapers)
JEL-codes: C33 F32 F41 (search for similar items in EconPapers)
Pages: 23
Date: 2008-10-19
New Economics Papers: this item is included in nep-agr
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http://repository.urosario.edu.co/bitstream/handle/10336/10935/5102.pdf

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Journal Article: Testing the law of one price in food markets: evidence for Colombia using disaggregated data (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:col:000092:005102

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