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...

وصف كامل

التفاصيل البيبلوغرافية
المؤلف الرئيسي: Goes, Carlos
مؤلفون آخرون: Matheson, Troy
التنسيق: دورية
اللغة:English
منشور في: Washington, D.C. : International Monetary Fund, 2015.
سلاسل:IMF Working Papers; Working Paper ; No. 2015/213
الموضوعات:
الوصول للمادة أونلاين:Full text available on IMF
الوصف
الملخص: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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وصف مادي:1 online resource (11 pages)
التنسيق:Mode of access: Internet
تدمد:1018-5941
وصول:Electronic access restricted to authorized BRAC University faculty, staff and students