Domestic Market Integration and the Law of One Price in Brazil /

This paper presents the first assessment domestic market integration in Brazil using the law of one price. The law of one price is tested using two panel unit root methodologies and a unique data set comprising price indices for 51 products across 11 metro-areas. We find that the law of one price ho...

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Xehetasun bibliografikoak
Egile nagusia: Goes, Carlos
Beste egile batzuk: Matheson, Troy
Formatua: Aldizkaria
Hizkuntza:English
Argitaratua: Washington, D.C. : International Monetary Fund, 2015.
Saila:IMF Working Papers; Working Paper ; No. 2015/213
Gaiak:
Sarrera elektronikoa:Full text available on IMF
Deskribapena
Gaia:This paper presents the first assessment domestic market integration in Brazil using the law of one price. The law of one price is tested using two panel unit root methodologies and a unique data set comprising price indices for 51 products across 11 metro-areas. We find that the law of one price holds for most tradable products and, not surprisingly, non-tradable products are found to be less likely to satisfy the law of one price. While these findings are consistent with evidence found for other countries, price convergence occurs very slowly in Brazil, suggesting relatively limited domestic market integration.
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Deskribapen fisikoa:1 online resource (11 pages)
Formatua:Mode of access: Internet
ISSN:1018-5941
Sartu:Electronic access restricted to authorized BRAC University faculty, staff and students