Transfer Costs, Spatial Arbitrage, and Testing for Food Market Integration
提出一种利用转移成本和价格信息评估空间套利效率的平价边界模型，蒙特卡洛实验证明其统计可靠性，菲律宾大米市场应用显示该模型能检测出其他检验无法发现的套利效率。
Abstract Conventional tests for food market integration ask, often misleadingly, whether prices in different locations move together. In this paper an alternative methodology, the parity bounds model (PBM), is developed which uses information on transfer costs in addition to food prices to assess the efficiency of spatial arbitrage. Monte Carlo experiments using data generated by a point‐space spatial price equilibrium model show the PBM to be statistically reliable. An application to Philippine rice markets demonstrates that the PBM detects efficient arbitrage when other tests do not.