Assessing the Validity of the LOP in the EU Broiler Markets. Issue 1 (14th April 2014)

• Record Type: Journal Article
• Authors: Emmanouilides, Christos J.; Fousekis, Panos
• Is Part Of: Agribusiness. Volume 31:Issue 1(2015)
• Page Start: 33
• Page End: 46
• Publication Date: 2014-04-14
• Subjects: Agriculture -- Economic aspects -- Periodicals; Agriculture -- Finance -- Periodicals; Agricultural industries -- Periodicals; Agriculture -- Economic aspects -- United States -- Periodicals; Agriculture -- United States -- Finance -- Periodicals; Agricultural industries -- United States -- Periodicals; 338.1
• DOI: 10.1002/agr.21386
• Languages: English
• ISSNs: 0742-4477

Abstract

<abstract abstract-type="main"> <title>ABSTRACT</title> <p>The objective of this article is to assess the validity of the Law of One Price (LOP) in five major EU broiler markets. This has been pursued using weekly price data from 1991 to 2012 and recent developments in econometric methodology that account simultaneously for nonstationarity, nonlinearity, and structural breaks. The empirical results provide strong evidence that the LOP holds, predominantly in its weak version. This implies that shocks are fully transmitted from one spatial market to the others, but price differences among them are likely to persist even in the long‐run.</p> </abstract>