Skip to main content

A variable threshold band approach to measuring market linkages

Buy Article:

$55.00 plus tax (Refund Policy)

Abstract:

Uncertain and changing economic conditions can have substantial effects on price relationships in spatially separated, linked markets. Although numerous studies have analysed price relationships to characterize market linkage structures, most assume that the relationships and associated linkages are time invariant. This study extends the literature by modelling and estimating time-dependent market linkages that are conditional on changes in exogenous factors. The methodology is used to investigate price relationships in North Carolina (NC) corn and soya bean markets. Empirical results indicate that generalized market-linkage models provide a better representation of price relationships over time, improving the understanding of price discovery dynamics and marketing strategies.

Keywords: D23; Q11; Q13; error-correction; integration; thresholds; transaction costs

Document Type: Research Article

DOI: https://doi.org/10.1080/00036846.2012.671925

Affiliations: 1: Department of Agricultural Economics and Economics,Montana State University, Bozeman,MT 59715-2920, USA 2: Department of Agricultural and Resource Economics,North Carolina State University, Raleigh,NC 27695, USA

Publication date: 2013-07-01

More about this publication?
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more