SPATIAL MARKET INTEGRATION: DEFINITION, THEORY, AND EVIDENCE

A point-space model of interregional trade is used to define market integration and to explore its implications for modeling spatial price relationships. This analysis indicates that spatial prices are related nonlinearly, contrary to much of the work on spatial price analysis which uses linear models. As an empirical example, corn market integration along the Mississippi River is examined during the Midwest flood of 1993. Higher transport costs during this period significantly reduced the extent of integration and thereby decreased excess demand shock transference across regions.


Subject(s):
Issue Date:
1996-04
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/31646
Published in:
Agricultural and Resource Economics Review, Volume 25, Number 1
Page range:
1-11
Total Pages:
11




 Record created 2017-04-01, last modified 2017-08-24

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