SPATIAL PRICING EFFICIENCY: THE CASE OF U.S. LONG GRAIN RICE

The spatial rice price relationships for U.S. long grain rough rice are affected by many factors besides the transportation cost between markets, such as milling, processing, cooking and nutritional value as well as physical characteristics. This study applies a time series framework to analyze long run price relationships for Arkansas, Mississippi, Louisiana, Texas and California long grain rice. Johansen's test results showed that at least there are two cointegrating price vectors. However, such a finding is not supported by the ECM model in any of the price series.