Law of One Price
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Recent papers in Law of One Price
We discuss the nonparametric approach to profit efficiency analysis at the firm and industry levels in the absence of complete price information. Two new insights are developed. First, we measure profit inefficiency in monetary terms... more
This paper examines empirically the dynamic process of regional market integration in twelve Asian economies using a new modeling approach combining DF with ECM. This approach enables us to obtain latent regional dynamic factors which... more
We examine the role of nominal price rigidities in explaining the deviations from the Law of One Price (LOP) across cities in Japan. Focusing on intra-national relative prices isolates the border effect and thus enables us to extract the... more
The natural gas market all over the world has been suffering tremendous changes for the past decades, not only because of market liberalization, but also due to industry restructuring and the strong expansion of liquefied natural gas... more
El presente artículo es la continuación del artículo “Generalidades de los ADRs: Un estudio de caso sectorial para empresas de Colombia, México, Brasil y Chile” y al igual que este, es un subproducto de la investigación “Arbitraje con... more
With its increasing integration into the world economy, agricultural exports and rural incomes in Vietnam have increased substantially in recent years. At the sub-national level, however, there are concerns that not all regions and... more
This article argues that the appropriate standard for the analysis of commodity market integration is the transport cost adjusted law of one price. A threshold error correction model that incorporates that property is developed and... more
This paper examines 4 million price observations over an eight month time period for 1000 of the best-selling consumer electronics products found on the price comparison site Shopper.com. We find that observed levels of price dispersion... more
This paper examines 4 million price observations over an eight month time period for 1000 of the best-selling consumer electronics products found on the price comparison site Shopper.com. We find that observed levels of price dispersion... more
This paper examines exchange-rate and price-level data for the long period 1590-2009 for the Netherlands and the United Kingdom (earlier the Dutch Republic and England), countries that at various times over this near four century span... more
The standard approach to modelling coffee prices ignores the impact that changes in government policies and market structures has on coffee prices. These changes have led to large structural breaks in coffee prices implying the standard... more
This paper examines whether there is spatial integration between and within paddy markets in the north and south of Vietnam. The empirical model developed uses estimates of transfer costs to generalise Ravallion's model of spatial... more
The purchasing power parity (PPP) and the law of one price (LOP) are among the most relevant issues in the academic debate: restricting the search to Google Scholar, the exact sequence of words “purchasing power parity” scored 57,600... more
At a level of individual goods, heterogeneity of marginal transaction costs, proxied by price-to-weight ratios and stowage factors, explains a large part of the variation in thresholds of no-adjustment and conditional half-lives of law of... more