Testing the Effects of the Japanese Vehicle Emission-Control Law on the International Palladium Futures Market

Economics Bulletin, Volume 32, Issue 2, (2012)

10 Pages Posted: 5 Jul 2019

See all articles by Kentaka Aruga

Kentaka Aruga

Saitama University, Graduate School of Humanities and Social Sciences; Graduate School of Humanities and Social Sciences

Shunsuke Managi

Kyushu University

Date Written: Nov 21, 2011

Abstract

This paper tested the effects of the 2005 vehicle emission-control law issued in Japan on the market linkages between the U.S. and Japanese palladium futures markets. To determine these effects, we applied a cointegration test both with and without break points in the time series and found that the market linkages between the two countries changed after the break in October 2005. Our results show that the long-term regulation of vehicle emissions enacted in Japan influenced the international palladium futures market.

Keywords: palladium, vehicle emissions, cointegration, structural change

JEL Classification: C22; Q30

Suggested Citation

Aruga, Kentaka and Aruga, Kentaka and Managi, Shunsuke, Testing the Effects of the Japanese Vehicle Emission-Control Law on the International Palladium Futures Market (Nov 21, 2011). Economics Bulletin, Volume 32, Issue 2, (2012), Available at SSRN: https://ssrn.com/abstract=3414283

Kentaka Aruga (Contact Author)

Saitama University, Graduate School of Humanities and Social Sciences ( email )

255 Shimo-Okubo, Sakura-ku, Saitama-shi
Saitama, 338-8570
Japan

Graduate School of Humanities and Social Sciences ( email )

255 Shimo-Okubo, Sakura-ku, Saitama-shi
Saitama
Japan

Shunsuke Managi

Kyushu University ( email )

Fukuoka, Fukuoka
Japan

HOME PAGE: http://www.managi-lab.com/english.html

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