Agricultural Economics

Reports from University of Massachusetts add new data to research in agricultural economics

Published in State and Local Health Law Weekly, November 15th, 2007

"We employ a vertical differentiation model to examine the potential bias in pricing-to-market results when using export unit values aggregating differentiated products," scientists in the United States report.

"Our results show that: (i) false evidence of pricing-to-market is always found when using unit values, whether the law of one price holds or not; and (ii) the size of the bias increases with the level of product differentiation. Our simulation results support those conceptual findings," wrote N. Lavoie and colleagues, University of Massachusetts.

The researchers concluded: "Thus, some of the positive pricing-to-market results in the...

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Source: State and Local Health Law Weekly (2007-11-15)

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