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Regional prices in early twentieth-century Spain: a country-product-dummy approach

Author

Listed:
  • Alicia Gómez-Tello

    (Universitat de València)

  • Alfonso Díez-Minguela

    (Universitat de València)

  • Julio Martinez-Galarraga

    (Universitat de València)

  • Daniel A. Tirado

    (Universitat de València)

Abstract

This paper explores regional price variation in early twentieth-century Spain. Using consumer price information from the bulletins published by the Instituto de Reformas Sociales between 1910 and 1920, we build a dataset with a total of 40,581 quotes covering 22 items for each of the 49 provinces. We then estimate provincial price levels following a country-product-dummy (CPD) approach. Our findings suggest that spatial price variation existed across Spanish provinces. In line with the Balassa–Samuelson conjecture, consumer prices and productivity levels were somewhat related. Additionally, it is shown that prices rose in all provinces after the outbreak of World War I. Even more, it appears that this demand-shock brought about spatial asymmetries in price growth.

Suggested Citation

  • Alicia Gómez-Tello & Alfonso Díez-Minguela & Julio Martinez-Galarraga & Daniel A. Tirado, 2019. "Regional prices in early twentieth-century Spain: a country-product-dummy approach," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 13(2), pages 245-276, May.
    • Handle: RePEc:spr:cliomt:v:13:y:2019:i:2:d:10.1007_s11698-018-0175-3
    DOI: 10.1007/s11698-018-0175-3
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    2. Martina Menon & Federico Perali & Ranjan Ray & Nicola Tommasi, 2019. "The Tale of the Two Italies: Regional Price Parities Accounting for Differences in the Quality of Services," Working Papers 20/2019, University of Verona, Department of Economics.
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    4. Alfonso Díez‐Minguela & Rafael González‐Val & Julio Martinez‐Galarraga & M. Teresa Sanchis & Daniel A. Tirado, 2020. "The long‐term relationship between economic development and regional inequality: South‐West Europe, 1860–2010," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 479-508, June.

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    More about this item

    Keywords

    Spain; Prices; Living standards; Economic development;
    All these keywords.

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • N00 - Economic History - - General - - - General
    • N9 - Economic History - - Regional and Urban History
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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