全球智库信息集成服务系统(G2TT): \"The Bigger They Are, The Harder They Fall\": How Price Differences Across U.S. Cities Are Arbitraged

G2TT

来源类型	Working Paper
规范类型	报告
DOI	10.3386/w6089
来源ID	Working Paper 6089
	\"The Bigger They Are, The Harder They Fall\": How Price Differences Across U.S. Cities Are Arbitraged
	Paul G. J. O'; Connell; Shang-Jin Wei
发表日期	1997-07-01
出版年	1997
语种	英语
摘要	Recent empirical work has made headway in exploring the non-linear dynamics of deviations from the law of one price and" purchasing power parity that are apt to arise from transaction costs. However, there are two important facets of this work that need improvement. First, the choice of empirical specification is arbitrary. Second, the data used are typically composite price indices which are subject to potentially serious aggregation biases. This paper examines the evidence for transport-cost-induced nonlinear price behavior within the U.S. We address both of the above shortcomings. First, we use a simple continuous-time model to inform the choice of empirical specification. The model indicates that the behavior of deviations from price parity depends on the relative importance of fixed and variable transport costs. Second, we employ data on disaggregated commodity prices, yielding a pure' measure of the deviations from price parity. We find strong evidence of nonlinear reversion in these deviations. The nature of this reversion suggests that fixed costs of transportation are integral to an understanding of law-of-one-price deviations.
主题	International Economics ; International Finance ; Econometrics ; Estimation Methods
URL	https://www.nber.org/papers/w6089
来源智库	National Bureau of Economic Research (United States)
引用统计
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/563597
推荐引用方式 GB/T 7714	Paul G. J. O',Connell,Shang-Jin Wei. \"The Bigger They Are, The Harder They Fall\": How Price Differences Across U.S. Cities Are Arbitraged. 1997.

条目包含的文件
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w6089.pdf（469KB）	智库出版物		限制开放	CC BY-NC-SA	浏览