A Model of Spatial Arbitrage with Transport Capacity Constraints and Endogenous Transport Prices

Coleman, Andrew

doi:10.1111/j.1467-8276.2008.01183.x

Cited by 17 publications

(14 citation statements)

References 16 publications

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“…As noted below we have not been able to substantiate a conjecture implied by Coleman (2009) that a fall in the frequency of stock-outs might contribute to the smaller violations of the law of one price. For example, when prices rise above equilibrium sellers might mistake that for a permanent rise and increase their imports.…”

Section: A Model Of Excess Demand and Supplycontrasting

confidence: 74%

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The gains from improved market efficiency: trade before and after the transatlantic telegraph

Ejrnæs¹,

Persson²

2010

European Review of Economic History

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This article looks at the gains from improved market efficiency in long-distance grain trade in the second half of the nineteenth century, when violations of the law of one price were reduced due to improved information transmission. Two markets, a major export centre, Chicago, and a major importer, Liverpool, are analysed. We show that the law of one price equilibrium was an 'attractor equilibrium'. The implication is that prices converged to that equilibrium in a tâtonnement process. Because of asymmetrically timed information between markets separated by long distances there were periods of excess demand as well as excess supply, which triggered off the tâtonnement process. Over time, adjustments to equilibrium, as measured by the half-life of a shock, became faster and violations of the law of one price become smaller. There were significant gains from improved market efficiency, which took place after the information 'regime' shifted from pre-telegraphic communication to a regime with swift transmission of information in an era that saw the development of a sophisticated commercial press and telegraphic communication. This article is the first attempt to actually measure the gains from improved market efficiency and it demonstrates that improved market efficiency probably stimulated trade more than falling transatlantic transport costs. Deadweight losses decline significantly as markets became more efficient. The conventional view that Harberger triangles are almost always insignificant is challenged.

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Section: A Model Of Excess Demand and Supplycontrasting

confidence: 74%

“…In a recent article, Coleman (2009) has shown that constraints in storage can cause violations of the law of one price. For example, an adverse output shock in a market might bring inventory levels down to zero, and prices will then depart from the law of one price until new shipments arrive.…”

Section: What Caused the Improvement In Market Efficiency?mentioning

confidence: 99%

The gains from improved market efficiency: trade before and after the transatlantic telegraph

Ejrnæs¹,

Persson²

2010

European Review of Economic History

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“…Technologies, which are the source of SO2 emissions, normally decrease as the GDP per capita increases. Therefore, where most countries remain in the developing stage, the SO2 emissions per capita are increasing at lower economic levels and begins to decrease at higher GDP levels, which is consistent with recent studies (e.g., Iwami 2004;Yaguchi et al 2007;Coleman 2009). SO2 is considered a local pollutants that is easier to control than global emissions.…”

Section: Co2supporting

confidence: 78%

Global environmental emissions estimate: application of multiple imputation

Miyama

Managi

2014

Environ Econ Policy Stud

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A new database called the World Resource Table (WRT) is constructed in this study.Missing values are known to produce complications when constructing global databases.This study provides a solution for applying multiple imputation techniques and estimates the global environmental Kuznets curve (EKC) for CO2, SO2, PM10, and BOD. Policy implications for each type of emission are derived based on the results of the EKC. Finally, we predicted the future emissions trend and regional share of CO2 emissions. We found that East Asia and South Asia will be increasing their emissions share while other major CO2 emitters will still produce large shares of the total global emissions.Keywords: Global emissions; Multiple Imputation; Environmental Kuznets Curve; Missing data; Forecasting. Acknowledgement;We are grateful to Hajime Katayama for his detailed and helpful comments and

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“…However, this conclusion holds only if trade is instantaneous. If trade takes time as in Coleman (2009), it can be rational to store imported commodities.…”

Section: The Competitive Storage Modelmentioning

confidence: 99%

Agricultural Price Instability: A Survey of Competing Explanations and Remedies

Gouel

2010

Journal of Economic Surveys

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There are two explanations for agricultural price dynamics. One follows cobweb logic and models fluctuations driven by expectation errors but emphasises that these expectations create complex dynamics and possibly chaos. The other stems from the rational expectations tradition of dynamics driven by real shocks. The empirical evidence tends to support the latter, but is not conclusive. The rational expectations model generates an optimal dynamic path from which no improvement can be expected from public intervention. However, if we take account of all the potential market failures in agricultural markets, and especially in developing countries, this conclusion might require some qualifications, although an appropriate policy design for stability has still to be achieved. This paper surveys the positive and normative literature on agricultural prices, highlighting empirical evidence and identifying remaining unresolved issues.

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A Model of Spatial Arbitrage with Transport Capacity Constraints and Endogenous Transport Prices

Cited by 17 publications

References 16 publications

The gains from improved market efficiency: trade before and after the transatlantic telegraph

The gains from improved market efficiency: trade before and after the transatlantic telegraph

Global environmental emissions estimate: application of multiple imputation

Agricultural Price Instability: A Survey of Competing Explanations and Remedies

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