Abstract
The integration of the Danish roundwood market with the surrounding markets during the period 1911 through 1992 is analyzed. A qualitative evaluation of the market agents’ expressed perceptions is compared to an empirical analysis of roundwood prices. The agents’ explanations of price fluctuations in the Danish roundwood market indicate that they perceive international competition to be essential. The result of this qualitative analysis also points to the presence of local disturbances which potentially diminish the support for market integration when testing the Law of One Price. The empirical analysis is performed in bivariate error correction models (ECM) using the Johansen method, and the results support the LOP for the most comparable roundwood products.
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Thorsen, B.J., Riis, J., Helles, F., Holten-Andersen, P. (1999). Internationalisation of Roundwood Markets - the Case of Denmark. In: Abildtrup, J., Helles, F., Holten-Andersen, P., Larsen, J.F., Thorsen, B.J. (eds) Modern Time Series Analysis in Forest Products Markets. Forestry Sciences, vol 58. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-4772-9_5
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DOI: https://doi.org/10.1007/978-94-011-4772-9_5
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