Market integration in Mozambique: A non-parametric extension to the threshold model

One of the main drawbacks of current methods to measure market integration is the assumption of constant transaction costs. In this paper, we propose a non-parametric extension to the commonly used threshold models, allowing us to estimate transaction costs in a more flexible way. We illustrate the...

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Detalles Bibliográficos
Autor principal: Van Campenhout, Bjorn
Formato: Artículo preliminar
Lenguaje:Inglés
Portugués
Publicado: International Food Policy Research Institute 2012
Materias:
Acceso en línea:https://hdl.handle.net/10568/152077
Descripción
Sumario:One of the main drawbacks of current methods to measure market integration is the assumption of constant transaction costs. In this paper, we propose a non-parametric extension to the commonly used threshold models, allowing us to estimate transaction costs in a more flexible way. We illustrate the method using weekly price data on maize collected in selected markets in Mozambique.