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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| Format: | Artículo preliminar |
| Language: | Inglés Portugués |
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International Food Policy Research Institute
2012
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| Online Access: | https://hdl.handle.net/10568/152077 |
| Summary: | 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. |
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