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Full-Text Articles in International Economics
Essays On The Law Of One Price In Financial Markets And The Recent Financial Crisis, Igor Sorkin
Essays On The Law Of One Price In Financial Markets And The Recent Financial Crisis, Igor Sorkin
Dissertations, Theses, and Capstone Projects
Essay 1: The theory of the Law of One Price (LOOP) is one of the most important theories in International Economics. I use financial markets to revisit the validity of the LOOP in the short run, and then extend the analysis into the long-run to examine whether events such as the Financial Crisis of 2007-2009 can lead to the failure of the LOOP or worsen deviations from it. Using the data on Canadian companies cross-listed on the New York Stock Exchange, I find strong support that the LOOP holds in a cross-sectional framework despite the fact that the sample includes …