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Distance and Time Effects in Swedish Commodity Prices, 1732–1914

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  • Mario J. Crucini
  • Gregor W. Smith

Abstract

We study the role of distance and time in statistically explaining price dispersion across 32 Swedish towns for 19 commodities from 1732 to 1914. The resulting large number of relative prices (502,689) allows precise estimation of distance and time effects, and their interaction. We find an effect of distance that declines significantly over time, beginning in the 18th century, well before the arrival of canals, the telegraph, or the railway.

Suggested Citation

  • Mario J. Crucini & Gregor W. Smith, 2016. "Distance and Time Effects in Swedish Commodity Prices, 1732–1914," NBER Working Papers 22175, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:22175
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    JEL classification:

    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative

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