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Distance and Time Effects in Swedish Commodity Prices, 1732-1914

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  • Crucini, Mario J.
  • Smith, Gregor W.

Abstract

We study the role of distance and time in statistically explaining price dispersion across 32 Swedish towns for 19 commodities from 1732 to 1914. The resulting large number of relative prices (502,689) allows precise estimation of distance and time effects, and their interaction. We find an effect of distance that declines significantly over time, beginning in the 18th century, well before the arrival of canals, the telegraph, or the railway.

Suggested Citation

  • Crucini, Mario J. & Smith, Gregor W., 2016. "Distance and Time Effects in Swedish Commodity Prices, 1732-1914," Queen's Economics Department Working Papers 274683, Queen's University - Department of Economics.
    • Handle: RePEc:ags:quedwp:274683
    DOI: 10.22004/ag.econ.274683
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    JEL classification:

    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts

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