The Law of One Price: Evidence from the Transitional Economy of China
运用面板单位根检验和非线性均值回归方法，基于中国大量商品和服务价格数据，发现绝大多数商品和服务价格收敛于一价定律，质疑了经济改革导致国内市场分割的观点。
This paper applies the recently developed econometric methods of panel unit root tests and nonlinear mean reversion to investigate price convergence in China--the largest transitional economy in the world. We find that prices did converge to the law of one price in China for an overwhelming majority of goods and services, based on a large panel data set. The finding sheds light on the extent of the market economy in China, and casts doubt on Young's proposition that the economic reform has led to the fragmentation of Chinese domestic markets.