Journal ArticleDOI
'The Bigger They Are, The Harder They Fall': Retail Price Differences Across U.S. Cities
TLDR
In this article, the authors examine the evidence for nonlinear price behavior in retail goods prices across U.S. cities and find that price discrepancies between U. S. cities are stationary and nonlinearly mean-reverting to price parity.Abstract:
This paper examines the evidence for nonlinear price behavior in retail goods prices across U.S. cities. First, a simple continuous-time model is used to explore the types of price behavior that can arise in the presence of market frictions. These frictions could be interpreted as transport costs, but we prefer a broader interpretation in which the frictions operate at the level of technology and preferences. Second, we gather price data from 24 U.S. cities on individual goods like orange juice and toothpaste. The empirical analysis reveals that price discrepancies between U.S. cities are stationary and nonlinearly mean-reverting to price parity.read more
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Journal ArticleDOI
Multi-Product Firms and Trade Liberalization
Andrew B. Bernard,Andrew B. Bernard,Andrew B. Bernard,Stephen J. Redding,Peter K. Schott,Peter K. Schott,Peter K. Schott +6 more
TL;DR: This paper developed a general equilibrium model of multi-product firms and analyzes their behavior during trade liberalization, finding that higher firm-level ability raises a firm's productivity across all products, which induces a positive correlation between a firms' intensive (output per product) and extensive (number of products) margins.
Book
Handbook on Hedonic Indexes and Quality Adjustments in Price Indexes: Special Application to Information Technology Products
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Journal ArticleDOI
Local Protectionism and Regional Specialization: Evidence from China's Industries
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Book ChapterDOI
China's embrace of globalization
TL;DR: The authors provided a succinct summary of the major steps in the evolution of Chinese policy toward international trade and foreign direct investment and their consequences since the late 1970s, drawing upon and updating a number of more comprehensive book-length treatments of the subject.
Journal ArticleDOI
Identifying FDI spillovers
TL;DR: In this paper, the authors improved on the strategy used in the literature to identify the spillover effect of horizontal foreign direct investment (FDI) by taking advantage of the plausibly exogenous relaxation of FDI regulations on China's World Trade Organization accession at the end of 2001.
References
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Journal ArticleDOI
Unit root tests in panel data: asymptotic and finite-sample properties
TL;DR: In this article, the authors consider pooling cross-section time series data for testing the unit root hypothesis, and they show that the power of the panel-based unit root test is dramatically higher, compared to performing a separate unit-root test for each individual time series.
Posted Content
The Purchasing Power Parity Puzzle
TL;DR: A number of recent studies have weighed in with fairly persuasive evidence that real exchange rates (nominal exchange rates adjusted for differences in national price levels) tend toward purchasing power parity in the very long run as discussed by the authors.
ReportDOI
The Six Major Puzzles in International Macroeconomics: Is There a Common Cause?
Maurice Obstfeld,Kenneth Rogoff +1 more
TL;DR: In this paper, the authors argue that by explicitly introducing costs of international trade (narrowly, transport costs, but more broadly, tariffs, nontariff barriers, and other trade costs), one can go far toward explaining a great number of the main empirical puzzles that international macroeconomists have struggled with over twenty-five years.
Journal ArticleDOI
The overvaluation of purchasing power parity
TL;DR: This article showed that no evidence against the random walk null can be found in panels of up to 64 real exchange rates, which cannot be attributed to low power, as there is ample power in panels with this size to reject the unit-root null.
ReportDOI
How Wide is the Border
TL;DR: In this article, the authors use C.I.P. data for U.S. cities and Canadian cities for 14 categories of consumer prices to examine the nature of the deviations from the law of one price.
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