LAW OF ONE PRICE AND THE CZECH CEREAL MARKET INTEGRATION INTO THE EU COMMON AGRICULTURAL MARKET

• Authors: Clark J. Stephen , Luboš Smutka , Lukáš Čechura , Petr Procházka , Mansoor Maitah
• Languages of publication: EN

Abstracts

EN

The Czech cereal market integration into the common agricultural market (EU) is studied using monthly price data for wheat and barley in Belgium, Germany, Austria and the Czech Republic in 1993 – 2010. Stability in the law of the one price (LOP) equation is studied through multiple structural breaks within the equation. The results indicate that the integration of the Czech Republic into EU cereal markets is more unstable than that of Austria (a fourth enlargement country), although there is more empirical support for the LOP when structural breaks are taken into account. The structural change also occurred in the old EU LOP equation between Belgium and Germany.

Keywords

EN

PRICE; TIME SERIES ANALYSIS; COMMODITY MARKETS; CZECH REPUBLIC; AGRICULTURAL MARKET; WHEAT; BARLEY

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2015
• Volume: 63
• Issue: 8
• Pages: 817 - 836

Contributors

author

Clark J. Stephen

• Dalhousie University, Department of Business and Social Sciences, Truro, Nova Scotia, Canada

author

Luboš Smutka

author

Lukáš Čechura

author

Petr Procházka

author

Mansoor Maitah