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Regional Patterns in the Law of One Price: The Roles of Geography vs. Currencies

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  • Engel, C.
  • Rogers, J.H.

Abstract

We find evidence that the law of one price (LOOP) holds more nearly for country pairs that are within geographic regions that for country pairs that are not.

Suggested Citation

  • Engel, C. & Rogers, J.H., 1996. "Regional Patterns in the Law of One Price: The Roles of Geography vs. Currencies," Working Papers 96-01, University of Washington, Department of Economics.
    • Handle: RePEc:udb:wpaper:96-01
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    References listed on IDEAS

    as
    1. Engel, Charles, 1993. "Real exchange rates and relative prices : An empirical investigation," Journal of Monetary Economics, Elsevier, vol. 32(1), pages 35-50, August.
    2. Atish R. Ghosh & Holger C. Wolf, 1994. "Pricing in International Markets: Lessons From The Economist," NBER Working Papers 4806, National Bureau of Economic Research, Inc.
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    6. Frankel, Jeffrey A. & Stein, Ernesto & Wei, Shang-Jin, 1994. "Trading Blocs: The Natural, the Unnatural, and the Super-Natural," Center for International and Development Economics Research (CIDER) Working Papers 233217, University of California-Berkeley, Department of Economics.
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    More about this item

    Keywords

    PRICING; ECONOMIC MODELS; EXCHANGE RATE;
    All these keywords.

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General

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