Precio del maíz en México y ley del precio único

Abstract

Corn supply is covered with United States (u. s.) imports, if such trade is free, then the law of one price (lop) should be observed. Under a vector error correction model the lop is assessed for corn prices in Mexico and u. s. Although results statistically reject the lop, the cointegrating estimated vector agrees in size and sign with the lop, the presence of such vector implies the existence of a stationary linear combination that provides evidence of markets integration. Secondarily, it is found that the Mexican corn price is Granger caused by u. s. corn price and that the former is not exogenous to the examined vector.