Batista, J. Chami; Filho, G. B. da Silveira - In: American Journal of Agricultural Economics 92 (2010) 4, pp. 1011-1023
The link between relative prices across countries and trade costs requires a theoretical foundation that is absent in the literature to date. Empirical tests on the law of one price are based on an arbitrage equation, which is of very limited relevance in understanding this link. The application...