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A Variance Components Approach to Food Grain Market Integration in Northern Nigeria
Author(s) -
Delgado Christopher L.
Publication year - 1986
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1242143
Subject(s) - variance (accounting) , market integration , sample (material) , economics , agricultural economics , variance components , econometrics , statistics , mathematics , macroeconomics , chemistry , accounting , chromatography
Abstract A variance components methodology is developed for joint tests on a sample of time series of prices for seasonal differences in the price integration of markets. The approach requires a statistically adequate number of observations for each market within seasons characterized by constancy of transactions costs among markets. The model is applied to eighteen months of weekly grain prices for twenty‐two villages in northern Nigeria. Results suggest that markets are not well integrated in the six months covering the harvest period. Implications are drawn for research on market performance in the region.