Trade Costs and Deviations from the Law of One Price

2010 ◽  
Vol 92 (4) ◽  
pp. 1011-1023 ◽  
Author(s):  
J. Chami Batista ◽  
G. B. Silveira Filho
Keyword(s):  
Trade Costs ◽  
Law Of One Price ◽  
The Law

E pluribus unum? Political fractionalization and deviations from the law of one price in the USA

2021 ◽  
Author(s):  
Massimo Antonini ◽  
David Fielding ◽  
Jacinta Pires
Keyword(s):  
Important Determinant ◽  
Trade Costs ◽  
Law Of One Price ◽  
Language Differences ◽  
The Usa ◽  
Order Of Magnitude ◽  
The Law ◽  
Political Differences

Abstract The magnitude of deviations from the Law of One Price (LOP) across cities depends on a number of characteristics, including language differences, distance, and other correlates of trade costs. We show that in the USA, political differences between cities are an equally important determinant of LOP deviations. LOP deviations are smaller if the cities are both strongly Democrat or both strongly Republican. These effects are of a similar order of magnitude to those of distance, and suggest that political differences represent a substantial barrier to competition.

A proposition on short-run departures from the law-of-one-price

1982 ◽  
Vol 17 (1) ◽  
pp. 51-60 ◽  
Author(s):  
Mario I. Blejer ◽  
Arye L. Hillman
Keyword(s):  
Law Of One Price ◽  
Short Run ◽  
The Law
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