Chen, Pei-Fen; Lee, Chien-Chiang - In: Agricultural Economics 39 (2008) 1, pp. 123-134
This article applies the Band-Threshold Autoregression (Band-TAR) model to investigate whether the law of one price (LOOP) holds in Taiwanese wholesale hog markets during the period from May 1987 through December 2003. We find evidence of a nonlinear mean reversion in deviations from the LOOP...