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AN EMPIRICAL ANALYSIS OF INTERREGIONAL PRICE LINKAGES *
Author(s) -
Mjelde James W.,
Paggi Mechel S.
Publication year - 1989
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/j.1467-9787.1989.tb01231.x
Subject(s) - vector autoregression , economics , endogeneity , impulse response , econometrics , variance decomposition of forecast errors , autoregressive model , decomposition , structural vector autoregression , macroeconomics , mathematics , monetary policy , mathematical analysis , ecology , biology
Vector autoregression models are used to analyze the relationships between Texas and Illinois corn prices, and the New Orleans export price. Decomposition of error variances suggests an increasing exogeneity in the recent years between the export market and the two U.S. markets. Impulse response functions indicate that the export price influences both the Illinois and Texas prices.