THE EXTENT OF THE MARKET AND INTEGRATION THROUGH FACTOR MARKETS: EVIDENCE FROM WHOLESALE ELECTRICITY.
We document the influence of factor markets in determining the extent of the market, appealing to the Mundell hypothesis that trade in goods and factor markets are substitutes. We confirm this influence using the U.S. wholesale market for electric power. Although the Eastern, Western, and Texas regi...
| Publicado en: | Economic Inquiry Vol. 58; no. 3; pp. 1076 - 1109 |
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| Autores principales: | , |
| Formato: | Artículo |
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Wiley-Blackwell
Jul2020
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=143422820&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 143422820 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00952583 EIQ jtl: Economic Inquiry issn: 00952583 maglogo: Y pubinfo: dt: Jul2020 vid: 58 iid: 3 pid: 480 pub: Wiley-Blackwell artinfo: ui: 143422820 10.1111/ecin.12879 ppf: 1076 ppct: 33 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 2.3MB tig: atl: THE EXTENT OF THE MARKET AND INTEGRATION THROUGH FACTOR MARKETS: EVIDENCE FROM WHOLESALE ELECTRICITY. aug: au: Butters, R. Andrew Spulber, Daniel F. affil: Business Economics & Public Policy, Kelley School of Business, Indiana University, Bloomington IN, 47405 Strategy Department, Kellogg School of Management, Northwestern University, Evanston IL, 60208 su: International economic integration Deregulation Electric power Electric power production Gas industry sug: subj: International economic integration Deregulation Fossil Fuel Electric Power Generation Pipeline Transportation of Natural Gas Crude Petroleum and Natural Gas Extraction Natural Gas Distribution Support Activities for Oil and Gas Operations Conventional oil and gas extraction Electric power Electric power production Gas industry ab: We document the influence of factor markets in determining the extent of the market, appealing to the Mundell hypothesis that trade in goods and factor markets are substitutes. We confirm this influence using the U.S. wholesale market for electric power. Although the Eastern, Western, and Texas regions cannot trade electricity, inputs such as natural gas move freely across these regions. Through a set of price transmission ratios, and a supply model for natural gas, we find regional electricity shocks do propagate across regions. We conclude output markets institutionally in autarky achieve modest degrees of economic integration through factor markets. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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