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Effects of the structural change on transaction costs between North America natural gas spot markets

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  • Kannika Duangnate
  • James W. Mjelde

Abstract

Threshold cointegration between market pairs before and after the potential structural break associated with the shale gas revolution is examined. Pairwise transaction costs differ between the pre- and post-break periods. During the post-break period, five of seven pairwise transaction costs decrease, while the remaining two pair-wise transaction costs increase relative to the pre-break period. Alterations in natural gas flows as the result of the shale gas revolution partially explain the changes in transaction costs.

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  • Kannika Duangnate & James W. Mjelde, 2017. "Effects of the structural change on transaction costs between North America natural gas spot markets," Applied Economics, Taylor & Francis Journals, vol. 49(7), pages 650-663, February.
    • Handle: RePEc:taf:applec:v:49:y:2017:i:7:p:650-663
    DOI: 10.1080/00036846.2016.1203065
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    References listed on IDEAS

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    1. Núñez, Héctor M. & Trujillo-Barrera, Andres & Etienne, Xiaoli, 2022. "Declining integration in the US natural gas market," Resources Policy, Elsevier, vol. 78(C).

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