Price clustering in Australian water markets
Abstract:The finding of clustering in financial prices on particular digits is common across a broad range of financial markets. This article explores whether price clustering is also present in the case of the weekly market for seasonal water in rural Victoria, Australia. We find a similar degree of clustering in the seasonal water market. This suggests that the trading activities of the market produce characteristics that are similar to more sophisticated and deeper financial markets.
Document Type: Research Article
Affiliations: 1: Department of Econometrics and Business Statistics,Monash University, PO Box 197Caulfield EastVictoria 3145, Australia 2: Department of Economics,Monash University, Melbourne, Australia
Publication date: February 1, 2013