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Abstract

Research on price transmission in vertically markets models the various price data, production index, consumer index and expectations index to proof market integration relations and estimate price transmission cycles, as well as to find out its function mechanism. Thanks to the development of market integration theory, research in this field explored well-rounded metric models. And the main research results are very closely to. To build up systematic models to input more variables based on demand and supply function, and remove the assumption of constant returns to scale of enterprises involving marketing and fully competitive market would be the development direction in this field. In this way, models draw close to the truth of economic operations.

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