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...