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

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.


Issue Date:
Aug 05 1990
Publication Type:
Conference Paper/ Presentation
Record Identifier:
http://ageconsearch.umn.edu/record/270897
Language:
English
Total Pages:
15




 Record created 2018-04-06, last modified 2018-04-06

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