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Regional Inflation Persistence: Evidence from Italy

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  • Andrea Vaona
  • Guido Ascari

Abstract

Vaona A. and Ascari G. Regional inflation persistence: evidence from Italy, Regional Studies . Regional patterns of inflation persistence have received attention only at the level of European Monetary Union member states. However, economic disparities within European Monetary Union member states are an equally important policy issue. This paper considers a country with a large regional divide -- Italy -- at a fine level of territorial disaggregation (NUTS-3). It is shown that economically backward regions display greater inflation persistence. Moreover, 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. Vaona A. et Ascari G. La continuité de l'inflation régionale: des preuves provenant de l'Italie, Regional Studies . C'est seulement par rapport aux pays-membres de la zone euro que la distribution régionale de la continuité de l'inflation a attiré l'attention. Cependant, les écarts économiques au sein des pays-membres de la zone euro sont également une question de politique importante. Cet article cherche à considérer un pays où s'impose un clivage régional non-négligeable -- à savoir, l'Italie -- à un niveau fin de désagrégation territoriale (NUTS-3). On montre que les régions économiquement en perte de vitesse font preuve d'une plus grande continuité de l'inflation. Qui plus est, une plus grande continuité se rapporte à un niveau de compétitivité moins élevé dans le commerce de détail. Finalement, la continuité de l'inflation au niveau national ne fait aucune preuve de parti pris quant à l'agrégation géographique, parce que elle est la moyenne de la continuité de l'inflation des données régionales. Continuité de l'inflation Commerce de détail Régions Vaona A. und Ascari G. Regionale Inflationspersistenz: Belege aus Italien, Regional Studies . Die regionalen Muster der Inflationspersistenz wurden bisher nur auf der Ebene der Mitgliedsstaaten der Europäischen Währungsunion untersucht. Die wirtschaftlichen Disparitäten innerhalb der Mitgliedsstaaten der Europäischen Währungsunion sind jedoch ein ebenso wichtiges politisches Problem. In diesem Beitrag wird ein Land mit starken regionalen Unterschieden (Italien) auf der engmaschigen Ebene der territorialen Disaggregation untersucht. Es wird nachgewiesen, dass wirtschaftlich rückständige Regionen eine höhere Inflationspersistenz aufweisen. Darüber hinaus geht eine höhere Persistenz mit einem niedrigeren Ausmaß von Konkurrenz im Einzelhandelssektor einher. Ebenso weist die Inflationspersistenz auf nationaler Ebene kein geografisches Aggregationsungleichgewicht auf, da sie der mittleren Inflationspersistenz von Daten auf Provinzebene entspricht. Inflationspersistenz Einzelhandelssektor Regionen Vaona A. y Ascari G. Persistencia de la inflación regional: el ejemplo de Italia, Regional Studies . Los modelos regionales de la persistencia de la inflación hasta ahora se han analizado solamente a nivel de los estados miembros de la Unión Monetaria Europea. Sin embargo, las desigualdades económicas entre los estados de la Unión Monetaria Europea son un tema político igualmente importante. En este artículo consideramos un país con una enorme división regional (Italia) a un nivel detallado de desagregación territorial (NUTS-3). Mostramos que las regiones económicamente atrasadas muestran una persistencia de inflación mayor. Además, una mayor persistencia está vinculada a un menor grado de competitividad en el sector minorista. Finalmente, la persistencia de la inflación a nivel nacional no presenta ninguna parcialidad de agregación geográfica porque iguala el promedio de persistencia de la inflación de los datos provinciales. Persistencia de la inflación Sector minorista Regiones

Suggested Citation

  • Andrea Vaona & Guido Ascari, 2012. "Regional Inflation Persistence: Evidence from Italy," Regional Studies, Taylor & Francis Journals, vol. 46(4), pages 509-523, June.
  • Handle: RePEc:taf:regstd:v:46:y:2012:i:4:p:509-523
    DOI: 10.1080/00343404.2010.505913
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    Cited by:

    1. Nagayasu, Jun, 2014. "Regional inflation, spatial location and the Balassa-Samuelson effect," MPRA Paper 59220, University Library of Munich, Germany.
    2. 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.
    3. Brown, M. & de Haas, R. & Sokolov, V., 2013. "Regional Inflation and Financial Dollarization," Discussion Paper 2013-073, Tilburg University, Center for Economic Research.
    4. Nagayasu, Jun, 2015. "Regional Inflation and Consumption Behaviors," MPRA Paper 68566, University Library of Munich, Germany.
    5. 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.
    6. 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.
    7. Filiz Yesilyurt & J. Elhorst, 2014. "A regional analysis of inflation dynamics in Turkey," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(1), pages 1-17, January.
    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. Peter Tillmann, 2013. "Inflation Targeting and Regional Inflation Persistence: Evidence from Korea," Pacific Economic Review, Wiley Blackwell, vol. 18(2), pages 147-161, May.
    10. Angelos Liontakis & Dimitris Kremmydas, 2013. "Food Inflation in EU: Distribution Analysis and Spatial Effects," Working Papers 2013-3, Agricultural University of Athens, Department Of Agricultural Economics.
    11. Jun Nagayasu, 2017. "Regional inflation, spatial locations and the Balassa-Samuelson effect: Evidence from Japan," Urban Studies, Urban Studies Journal Limited, vol. 54(6), pages 1482-1499, May.
    12. repec:ebd:wpaper:163 is not listed on IDEAS
    13. repec:eee:ecmode:v:69:y:2018:i:c:p:49-57 is not listed on IDEAS
    14. repec:mes:eaeuec:v:55:y:2017:i:3:p:261-276 is not listed on IDEAS
    15. Paweł Gajewski, 2017. "Sources of Regional Inflation in Poland," Eastern European Economics, Taylor & Francis Journals, vol. 55(3), pages 261-276, May.

    More about this item

    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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