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Market integration in Mozambique: A non-parametric extension to the threshold model

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  • Van Campenhout, Bjorn

Abstract

One of the main drawbacks of current methods to measure market integration is the assumption of constant transaction costs. In this paper, we propose a non-parametric extension to the commonly used threshold models, allowing us to estimate transaction costs in a more flexible way. We illustrate the method using weekly price data on maize collected in selected markets in Mozambique.

Suggested Citation

  • Van Campenhout, Bjorn, 2012. "Market integration in Mozambique: A non-parametric extension to the threshold model," MSSP working papers 4, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:msspwp:4
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    File URL: https://hdl.handle.net/10568/152077
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