Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/316512 
Year of Publication: 
2016
Citation: 
[Journal:] East Asian Economic Review (EAER) [ISSN:] 2508-1667 [Volume:] 20 [Issue:] 4 [Year:] 2016 [Pages:] 427-445
Publisher: 
Korea Institute for International Economic Policy (KIEP), Sejong-si
Abstract: 
We review research using departures from the law of one price to measure the advent of globalization in Europe and Asia. In an application, we then study the role of distance and time in statistically explaining price dispersion across 32 Swedish towns for 19 commodities from 1732 to 1914. The resulting large number of relative prices (502,689) allows precise estimation of distance and time effects, and their interaction. We find an effect of distance that declines significantly over time, beginning in the 18th century, well before the arrival of canals, the telegraph, or the railway.
Subjects: 
Distance Effect
Law of One Price
Globalization
Historical Price Convergence
Market Integration in Sweden
JEL: 
E37
F61
N70
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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