Macroeconomic implications of uniform pricing
By: Daruich, Diego and Kozlowski, Julian
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Material type: 
BookPublisher: American Economic Journal: Macroeconomics Description: 15(3), Jul, 2023: p.64-108.Subject(s): PRICING
In:
American Economic Journal: MacroeconomicsSummary: We compile a new database of grocery prices in Argentina. We find uniform pricing both within and across regions—i.e., prices almost do not vary within the stores of a chain. In line with uniform pricing, prices in stores of chains operating in one region react to changes in regional employment while prices in multiregion chains do not. Using a quantitative regional model with multiregion firms and uniform pricing, we find a one-half smaller elasticity of prices to a regional than an aggregate shock. This result highlights that some caution may be necessary when using regional shocks to estimate aggregate elasticities.- Reproduced
| Item type | Current location | Call number | Vol info | Status | Date due | Barcode |
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Articles
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Indian Institute of Public Administration | 15(3), Jul, 2023: p.64-108 | Available | AR129477 | ||
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Articles
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Indian Institute of Public Administration | 15(3), Jul, 2023: p.64-108 | Available | AR129478 |
We compile a new database of grocery prices in Argentina. We find uniform pricing both within and across regions—i.e., prices almost do not vary within the stores of a chain. In line with uniform pricing, prices in stores of chains operating in one region react to changes in regional employment while prices in multiregion chains do not. Using a quantitative regional model with multiregion firms and uniform pricing, we find a one-half smaller elasticity of prices to a regional than an aggregate shock. This result highlights that some caution may be necessary when using regional shocks to estimate aggregate elasticities.- Reproduced
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