EH.Net Abstracts in Economic History

                ABSTRACTS IN ECONOMIC HISTORY
                     (c) 2000 EH.Net
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Name: Lee A. Craig
Email: lee_craig at ncsu.edu
Institution: North Carolina State University

Co-authors: Barry K. Goodwin and Thomas J. Grennes

Title: Mechanical Refrigeration and the Integration of Perishable 
Commodity Markets

Internet Address of abstracted work:
http://www2.ncsu.edu/unity/lockers/users/g/goodwin/illinois.pdf

By mail:
Lee A. Craig
Department of Economics
North Carolina State University
Campus Box 8110
Raleigh, NC 27695-8110
USA

Language: English

Abstract:
In this paper, we provide a history of the economic impact of 
mechanical refrigeration in the United States. We also examine 
spatial and temporal aspects of market integration. Specifically, we 
examine seasonal fluctuations in prices and analyze regional 
integration of markets for butter. We test the null hypothesis of no 
integration before and after the advent and adoption of refrigerated 
shipping and warehousing using thiry-one years of monthly data. We 
find strong evidence of spatially integrated markets. Our results 
indicate that the advent of mechanical refrigeration brought about a 
significant dampening of seasonal fluctuations of butter prices anda 
tightening of spatial price linkages. We conclude that the adoption 
of mechanical refrigeration had a significant impact on both temporal 
and spatial butter price relationships.

Bibliography: Bibliography: Goodwin, Barry K., Thomas J. Grennes, and 
Lee A. Craig. "Mechanical Refrigeration and the Integration of 
Perishable Commodity Markets," paper presented before the Fourth 
World Congress of Cliometrics. Montreal, Canada, July 2000.

Subject: A
Geographical Area: 7
Country/Region: United States
Time Period: 7,8

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