When did European markets integrate?

Giovanni Federico

Research output: Contribution to journalArticle

Abstract

This article argues that market integration should be measured as σ-convergence over the largest possible sample of markets. Its focus is the European market for wheat, rye and candles from the middle of the eighteenth century to the eve of the first globalization. Price dispersion for cereals remained constant until the outbreak of the French Wars, then it increased abruptly. It began to decline after the end of the wars, and the process continued steadily until an all-time low was reached in the 1860s. Domestic and international integration contributed in roughly the same proportions to integration in the long run, but the latter was much more important in accounting for medium-term changes. These results suggest that the level of integration was determined for most of the period by war and political events, with a substantial contribution from a fall in transport costs in the second quarter of the nineteenth century. By contrast, there is very little evidence of integration in the market for candles.

Original languageEnglish (US)
Pages (from-to)93-126
Number of pages34
JournalEuropean Review of Economic History
Volume15
Issue number1
DOIs
StatePublished - Apr 1 2011

Fingerprint

18th century
Wheat
Transport costs
Cereals
Price dispersion
Globalization
Proportion
Market integration
International integration
Transport Costs
Market Integration
1860s
French Wars

ASJC Scopus subject areas

  • History
  • Economics, Econometrics and Finance (miscellaneous)

Cite this

When did European markets integrate? / Federico, Giovanni.

In: European Review of Economic History, Vol. 15, No. 1, 01.04.2011, p. 93-126.

Research output: Contribution to journalArticle

Federico, Giovanni. / When did European markets integrate?. In: European Review of Economic History. 2011 ; Vol. 15, No. 1. pp. 93-126.
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