Estimating policy effects on spatial market efficiency: an extension to the parity bounds model.

Full sample (1996:08 to 2002:08) Robe & Addis 442 -- -- -- Hosaina & Addis 232 -- -- -- Jima & Addis 346 13.55 14.56 -1.01 Nekemte & Addis 327 21.24 20.34 1.01 Addis & Dese 402 12.01 14.88 -2.79 Addis & Mekele 783 37.16 39.70 -2.54 Addis & Dire Dawa 515 30.26 31.68 -1.43 Nazret & Dire Dawa 417 28.13 22.06 6.07 Shashemene & Dire 572 36.14 50.61 -14.47

Wheat

Price Transfer Market Pair Differential Cost Profit

First subperiod (1996:08 to 1999:09) Robe & Addis 47.92 36.92 11.00 Hosaina & Addis 37.99 26.58 11.41 Jima & Addis -- -- -- Nekemte & Addis -- -- -- Addis & Dese 16.22 14.79 1.43 Addis & Mekele 69.43 50.49 18.94 Addis & Dire Dawa 43.40 23.10 20.30 Nazret & Dire Dawa 52.65 38.14 14.51 Shashemene & Dire 63.58 51.36 12.22

Second subperiod (1999:10 to 2002:08) Robe & Addis 52.66 37.09 15.56 Hosaina & Addis 42.52 26.67 15.85 Jima & Addis -- -- -- Nekemte & Addis -- -- -- Addis & Dese 13.60 13.89 -0.29 Addis & Mekele 47.12 50.24 -3.12 Addis & Dire Dawa 51.00 22.52 28.48 Nazret & Dire Dawa 63.06 37.68 25.39 Shashemene & Dire 73.62 50.65 22.97

Full sample (1996:08 to 2002:08) Robe & Addis 50.19 37.00 13.19 Hosaina & Addis 40.16 26.63 13.54 Jima & Addis -- -- -- Nekemte & Addis -- -- -- Addis & Dese 14.97 14.36 0.61 Addis & Mekele 58.73 50.37 8.36 Addis & Dire Dawa 47.04 22.82 24.22 Nazret & Dire Dawa 57.64 37.92 19.72 Shashemene & Dire 68.46 51.02 17.44