Explaining time variation in geographic price dispersion

De Silva, Dakshina G. and Lee, I. and Lee, S.-C. (2019) Explaining time variation in geographic price dispersion. Applied Economics, 51 (42). pp. 4629-4641. ISSN 0003-6846

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Abstract

The pattern of price dispersion significantly varies over time and across locations. Using a detailed dataset with product-level retail prices, we examine the role of time-varying factors in shaping the time variation of price dispersion. We find that price dispersion variation in an integrated region is mainly driven by oil prices, while the variation in a segmented region is attributed to dispersion in real income. We also find that dispersion in value-added tax rates explains a significant portion of price dispersion fluctuations in both geographic dimensions. This paper offers new evindence on the trade-off that exists for the role of time-varying factors as contributors to price dispersion variation by highlighting their relative importance across different dimensions of economic geography.

Item Type: Journal Article
Journal or Publication Title: Applied Economics
Additional Information: This is an Accepted Manuscript of an article published by Taylor & Francis in Applied Economics on 21/03/2019, available online: https://www.tandfonline.com/doi/full/10.1080/00036846.2019.1593941
Uncontrolled Keywords: /dk/atira/pure/subjectarea/asjc/2000/2002
Subjects:
Departments: Lancaster University Management School > Economics
ID Code: 133286
Deposited By: ep_importer_pure
Deposited On: 30 Apr 2019 14:05
Refereed?: Yes
Published?: Published
Last Modified: 19 Feb 2020 05:20
URI: https://eprints.lancs.ac.uk/id/eprint/133286

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