Rights statement: 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
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Final published version
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
}
TY - JOUR
T1 - Explaining time variation in geographic price dispersion
AU - De Silva, Dakshina G.
AU - Lee, I.
AU - Lee, S.-C.
N1 - 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
PY - 2019/7/1
Y1 - 2019/7/1
N2 - 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.
AB - 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.
KW - income dispersion
KW - oil prices
KW - Price dispersion
KW - time variation
KW - VAT rates dispersion
U2 - 10.1080/00036846.2019.1593941
DO - 10.1080/00036846.2019.1593941
M3 - Journal article
VL - 51
SP - 4629
EP - 4641
JO - Applied Economics
JF - Applied Economics
SN - 0003-6846
IS - 42
ER -