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Prices and Competition. Evidence from a Social Program

Author

Listed:
  • Emilio Aguirre

    (Ministerio de Desarrollo Social (Uruguay))

  • Pablo Blanchard

    (Ministerio de Desarrollo Social (Uruguay))

  • Fernando Borraz

    (Banco Central del Uruguay)

  • Joaquín Saldain

    (Banco Central del Uruguay)

Abstract

We use a micro-price dataset to analyze the impact on prices of a social program in Uruguay that allow the beneficiaries to purchase food, beverages and cleaning items exclusively in certain small retailers. We find that the beneficiaries pay significantly higher prices in relation to prices in other retailers. We find this result for the whole country with the exception of areas with the highest retailer density in the capital city, Montevideo.

Suggested Citation

  • Emilio Aguirre & Pablo Blanchard & Fernando Borraz & Joaquín Saldain, 2015. "Prices and Competition. Evidence from a Social Program," Documentos de trabajo 2015002, Banco Central del Uruguay.
    • Handle: RePEc:bku:doctra:2015002
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    File URL: https://www.bcu.gub.uy/Estadisticas-e-Indicadores/Documentos%20de%20Trabajo/2.2015.pdf
    File Function: First version, 2015
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    Cited by:

    1. Ivone Perazzo & Analía Rivero & Andrea Vigorito, 2021. "¿Qué sabemos sobre los programas de transferencias no contributivas en Uruguay? Una síntesis de resultados de investigación disponibles sobre el PANES, AFAM-PE y TUS," Documentos de Trabajo (working papers) 21-33, Instituto de Economía - IECON.

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    Keywords

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    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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