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Convergence in price levels across US cities

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  • Huang, Ho-Chuan (River)
  • Liu, Wei-Han
  • Yeh, Chih-Chuan

Abstract

This paper empirically tests for convergence in consumer price indices across 17 major cities in US over the 1918–2008 period. By using the novel OLS estimator introduced by Bao, Y., Dhongde, S., 2009. Testing convergence in income distribution. Oxford Bulletin of Economics and Statistics 71, 295–302, we find overwhelming evidences in support of price level convergence over time.

Suggested Citation

  • Huang, Ho-Chuan (River) & Liu, Wei-Han & Yeh, Chih-Chuan, 2012. "Convergence in price levels across US cities," Economics Letters, Elsevier, vol. 114(3), pages 245-248.
    • Handle: RePEc:eee:ecolet:v:114:y:2012:i:3:p:245-248
    DOI: 10.1016/j.econlet.2011.09.039
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    References listed on IDEAS

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    Cited by:

    1. Christina Christou & Juncal Cunado & Rangan Gupta, 2016. "Price Convergence Patterns across U.S. States," Working Papers 201629, University of Pretoria, Department of Economics.

    More about this item

    Keywords

    CPI; Convergence; Panel data; GMM;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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