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Trade Costs and Deviations from the Law of One Price

J. Chami Batista and G. B. da Silveira Filho.

in American Journal of Agricultural Economics

July 2010; p ublished online July 2010 .

Journal Article. Subjects: International Trade; Single Equation Models; Single Variables; Macroeconomic Aspects of International Trade and Finance; Market Structure and Pricing. 8495 words.

The link between relative prices across countries and trade costs requires a theoretical foundation that is absent in the literature to date. Empirical tests on the law of one price are...