Lines in the Sand: Price Dispersion across Iraq's Intranational Borders before, during, and after the Surge
This paper tests the impact of a change in security commitment on market development in a country embroiled in low-intensity conflict. We analyze weekly price data for approximately 250 goods from 18 Iraqi cities between 2005 and 2008. Our paper suggests four empirical regularities associated with price dispersion and market development in postwar Iraq. First, the degree of intracountry price dispersion in Iraq is higher than that reported for a typical industrialized nation. Second, the degree of price dispersion decreased significantly during 2007, coincident with the change in U.S. security strategy known as the "surge." Third, the economic impact of the surge is geographically uneven but loosely follows patterns of U.S. deployment--with price dispersion decreasing by roughly one-third in areas targeted during the surge but remaining relatively static in other areas. Finally, we find that internal ethnoreligious divisions have relatively modest effects on price dispersion.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Yin-Wong Cheung & Eiji Fujii, 2008. "Deviations from the Law of One Price in Japan," CESifo Working Paper Series 2275, CESifo Group Munich.
- Jenny C. Aker, 2010. "Information from Markets Near and Far: Mobile Phones and Agricultural Markets in Niger," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 46-59, July.
- Paul R. Bergin & Reuven Glick, 2006.
"Global price dispersion: are prices converging or diverging?,"
Working Paper Series
2006-50, Federal Reserve Bank of San Francisco.
- Bergin, Paul R. & Glick, Reuven, 2007. "Global price dispersion: Are prices converging or diverging?," Journal of International Money and Finance, Elsevier, vol. 26(5), pages 703-729, September.
- James E. Anderson & Eric van Wincoop, 2003.
"Gravity with Gravitas: A Solution to the Border Puzzle,"
American Economic Review,
American Economic Association, vol. 93(1), pages 170-192, March.
- James E. Anderson & Eric van Wincoop, 2001. "Gravity with Gravitas: A Solution to the Border Puzzle," NBER Working Papers 8079, National Bureau of Economic Research, Inc.
- James E. Anderson & Eric van Wincoop, 2000. "Gravity with Gravitas: A Solution to the Border Puzzle," Boston College Working Papers in Economics 485, Boston College Department of Economics.
- Abadie, Alberto, 2004.
"Poverty, Political Freedom, and the Roots of Terrorism,"
Working Paper Series
rwp04-043, Harvard University, John F. Kennedy School of Government.
- Alberto Abadie, 2006. "Poverty, Political Freedom, and the Roots of Terrorism," American Economic Review, American Economic Association, vol. 96(2), pages 50-56, May.
- Alberto Abadie, 2004. "Poverty, Political Freedom, and the Roots of Terrorism," NBER Working Papers 10859, National Bureau of Economic Research, Inc.
- Russell Hillberry & David Hummels, 2002.
"Intra-national Home Bias: Some Explanations,"
NBER Working Papers
9022, National Bureau of Economic Research, Inc.
- David C. Parsley & Shang-Jin Wei, 2000.
"Explaining the Border Effect: The Role of Exchange Rate Variability, Shipping Costs, and Geography,"
NBER Working Papers
7836, National Bureau of Economic Research, Inc.
- Parsley, David C. & Wei, Shang-Jin, 2001. "Explaining the border effect: the role of exchange rate variability, shipping costs, and geography," Journal of International Economics, Elsevier, vol. 55(1), pages 87-105, October.
- Yuriy Gorodnichenko & Linda L. Tesar, 2009. "Border Effect or Country Effect? Seattle May Not Be So Far from Vancouver After All," American Economic Journal: Macroeconomics, American Economic Association, vol. 1(1), pages 219-241, January.
- Baba, Chikako, 2007. "Price dispersion across and within countries: The case of Japan and Korea," Journal of the Japanese and International Economies, Elsevier, vol. 21(2), pages 237-259, June.
- Nitsch, Volker & Schumacher, Dieter, 2004. "Terrorism and international trade: an empirical investigation," European Journal of Political Economy, Elsevier, vol. 20(2), pages 423-433, June.
- S. Brock Blomberg & Gregory D. Hess, 2006.
"How Much Does Violence Tax Trade?,"
The Review of Economics and Statistics,
MIT Press, vol. 88(4), pages 599-612, November.
- Alvarez-Ramirez Jose & Rodriguez Eduardo & Tyrtania Leonardo & Urrea-Garcìa Galo R, 2010. "Regime-Transitions in the 2003-2010 Iraq War: An Approach Based on Correlations of Daily Fatalities," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 16(1), pages 1-41, December.
- Holger C. Wolf, 2000. "Intranational Home Bias In Trade," The Review of Economics and Statistics, MIT Press, vol. 82(4), pages 555-563, November.
- Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-116, March.
When requesting a correction, please mention this item's handle: RePEc:ucp:jlawec:doi:10.1086/666586. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division)
If references are entirely missing, you can add them using this form.