000			01131nam a22001457a 4500
999			_c521191 _d521191
008			221226b ||||| |||| 00| 0 eng d
100			_aButters, R.A., Sacks, D.W. and Seo, B. _936401
245			_aHow do national firms respond to local cost shocks?
260			_aThe American Economic Review
300			_a112(5), May, 2022: p.1737-1772
520			_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
773			_aThe American Economic Review
906			_aCONSUMPTION
942			_cAR