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Regional Inflation Persistence: Evidence from Italy

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  • Andrea Vaona

    (Department of Economics (University of Verona))

  • Guido Ascari

    (Università di Pavia)

Abstract

Regional patterns of inflation persistence have received attention only at a very coarse level of territorial disaggregation, that of EMU member states. However economic disparities within EMU member states are an equally important policy issue. This paper considers a country with a large regional divide, i.e., Italy, at a fine level of territorial disaggregation (NUTS3). Our results show that economically backward regions display greater inflation persistence. Moreover, we show that higher persistence is linked to a lower degree of competitiveness in the retail sector. Finally, the inflation persistence at the national level does not present any geographical aggregation bias, because it equals the mean of inflation persistence of provincial data.

Suggested Citation

  • Andrea Vaona & Guido Ascari, 2010. "Regional Inflation Persistence: Evidence from Italy," Working Papers 04/2010, University of Verona, Department of Economics.
    • Handle: RePEc:ver:wpaper:04/2010
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    7. Nagayasu, Jun, 2015. "Regional Inflation and Consumption Behaviors," MPRA Paper 68566, University Library of Munich, Germany.
    8. Coleman, Simeon, 2012. "Where Does the Axe Fall? Inflation Dynamics and Poverty Rates: Regional and Sectoral Evidence for Ghana," World Development, Elsevier, vol. 40(12), pages 2454-2467.
    9. Polina S. Kuklinova & Vladimir V. Ilyashenko, 2022. "The impact of the inflation-targeting regime on the economic development of an industrial region," Journal of New Economy, Ural State University of Economics, vol. 23(2), pages 125-141, July.
    10. Mattia Cattaneo & Paolo Malighetti & Michele Meoli & Stefano Paleari, 2017. "University spatial competition for students: the Italian case," Regional Studies, Taylor & Francis Journals, vol. 51(5), pages 750-764, May.
    11. de Haas, R. & Brown, M. & Sokolov, V., 2015. "Regional Inflation, Financial Integration and Dollarization (This is a revision of CentER DP 2013-073)," Discussion Paper 2015-012, Tilburg University, Center for Economic Research.
    12. Hasan Engin Duran & Burak Dindaroğlu, 2021. "Regional inflation persistence in Turkey," Growth and Change, Wiley Blackwell, vol. 52(1), pages 460-491, March.
    13. Nikolsko-Rzhevskyy, Alex & Ogrokhina, Olena, 2018. "Behavior of retail prices in common currency areas: The case of the Eurozone," Economic Modelling, Elsevier, vol. 69(C), pages 49-57.
    14. Ikeno, Hidehiro, 2014. "Long-run analysis on convergence of Japanese local price levels: A pairwise approach," Economic Modelling, Elsevier, vol. 42(C), pages 390-397.
    15. Abuselidze, George, 2018. "Modern Challenges of Monetary Policy Strategies: Inflation and Devaluation Influence on Economic Development of the Country," MPRA Paper 99885, University Library of Munich, Germany, revised 26 Jan 2019.
    16. Paweł Gajewski, 2017. "Sources of Regional Inflation in Poland," Eastern European Economics, Taylor & Francis Journals, vol. 55(3), pages 261-276, May.
    17. de Haas, R. & Brown, M. & Sokolov, V., 2015. "Regional Inflation, Financial Integration and Dollarization," Other publications TiSEM ef569549-635c-490c-b44c-2, Tilburg University, School of Economics and Management.
    18. Nagayasu, Jun, 2017. "Inflation and consumption of nontradable goods: Global implications from regional analyses," International Review of Economics & Finance, Elsevier, vol. 48(C), pages 478-491.
    19. György Kocziszky & Dóra Szendi, 2015. "The Effects of Monetary Easing on Spatial Convergence in Hungary," Theory Methodology Practice (TMP), Faculty of Economics, University of Miskolc, vol. 11(02), pages 13-22.
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    21. Martin Brown & Ralph De Haas & Vladimir Sokolov, 2013. "Regional inflation and financial dollarisation," Working Papers 163, European Bank for Reconstruction and Development, Office of the Chief Economist.

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    More about this item

    Keywords

    inflation persistence; retail sector; regions;
    All these keywords.

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General
    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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