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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