Evidence of Spatial Autocorrelation in International Prices
Data from the International Comparison Program (ICP) generate a number of analyses examining price and quantity relationships across countries. Although geographic location is sometimes evoked to explain differences across observations, it is seldom used to measure the extent of this interrelationship. Using ICP Phase V benchmark studies at the level of household consumption for approximately sixty-four countries and twenty-three aggregate headings in 1985, this paper introduces such a measure, testing for spatial autocorrelation among price relatives with respect to three different measures of relative location: the pairwise existence of a common boundary, the distance between capital cities, and the amount of trade between two countries. Copyright 1996 by The International Association for Research in Income and Wealth.
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Volume (Year): 42 (1996)
Issue (Month): 2 (June)
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