01253nam a22001577a 4500999001900000008004100019100005000060245005600110260003500166300003500201520069100236773003500927906001600962942000700978952011000985  c521191d521191221226b           ||||| |||| 00| 0 eng d  aButters, R.A., Sacks, D.W. and Seo, B.936401  aHow do national firms respond to local cost shocks?  aThe American Economic Review    a112(5), May, 2022: p.1737-1772  aRecent research shows prices are insensitive to local demand conditions because national chains charge geographically uniform prices. We examine the price response to local cost shocks, including 68 excise tax changes, 76 sales tax changes, and other geographically based cost differences, using data on 35,151 retail stores in 96 multi-state chains. We find local cost shocks are passed through to local prices, with no spillovers to unaffected stores in otherwise affected chains, and at similar rates for national and local chains. Firms adjust local prices according to local cost changes, suggesting retailers respond asymmetrically to local cost and demand shocks. – Reproduced   aThe American Economic Review    aCONSUMPTION  cAR  00102ddc40709395243aIIPAbIIPAd2022-12-26h112(5), May, 2022: p.1737-1772pAR127744r2022-12-26yAR