Relative Price Volatility: What Role Does the Border Play
Preprint
- 1 September 1998
- preprint
- Published by Elsevier in SSRN Electronic Journal
Abstract
We reexamine the effect of the U.S./Canadian border on integration of markets. The paper updates work from our earlier paper, Engel and Rogers(1996). We consider alternative measures of deviations from the law of one price. We pay special attention to the effect of the U.S-Canada free trade agreement on market integration. Our conclusions are unchanged: markets in the U.S. and Canada are more segmented than can be explained by the physical distance between the two locations. Formal trade barriers do not appear to explain much of that segmentation.Keywords
This publication has 18 references indexed in Scilit:
- Trading blocs and the Americas: The natural, the unnatural, and the super-naturalPublished by Elsevier ,2002
- Intranational, Intracontinental, and Intraplanetary PPPJournal of the Japanese and International Economies, 1997
- Convergence to the Law of One Price Without Trade Barriers or Currency FluctuationsThe Quarterly Journal of Economics, 1996
- Do National Borders Matter for Quebec's Trade?Canadian Journal of Economics/Revue canadienne d'économique, 1996
- Haircuts or hysteresis? Sources of movements in real exchange ratesJournal of International Economics, 1995
- Real exchange rates and relative prices: An empirical investigationJournal of Monetary Economics, 1993
- Saving and Investment in an Open Economy with Non-Traded GoodsInternational Economic Review, 1989
- The Generalized Gravity Equation, Monopolistic Competition, and the Factor-Proportions Theory in International TradeThe Review of Economics and Statistics, 1989
- Pricing to Market when the Exchange Rate ChangesPublished by National Bureau of Economic Research ,1986
- The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical EvidenceThe Review of Economics and Statistics, 1985