This paper examines the relationship between causality models and cointegration models in testing for price integration and the Law of One Price (LOP). In our review, we show that cointegration models, which allow for nonstationarity in prices, are a natural extension of the traditional...

The catch of cod in Norway is processed into a variety of final products, most of which are exported. The main product categories are salted, dried and frozen products. Most processors have some choice as to which type of product to produce. Our hypothesis is that the choice of product type is...

This paper discuss the relationship between traditional parametric tests for market integration such as causuality tests and tests of the Law of One Price and cointegration tests for market integration. We show that cointegration tests are a natural extension of the traditional methods taking...