Modeling the Linkage Between Domestic and International Markets
Since the early 1970s it has become increasingly apparent that the linkages between domestic and international agricultural markets are extremely significant in determining the behavior of trade volumes and prices. Institutional factors and numerous policy measures influence this linkage in most countries. this basic concept employed in modeling market linkage has been the prices transmission elasticity, and the basic tool, the price transmission equation.
Charles H. Dyson School of Applied Economics and Management, Cornell University