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Macroeconomic Implications of Uniform Pricing

Author

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  • Diego Daruich
  • Julian Kozlowski

Abstract

We compile a new database of grocery prices in Argentina. We find uniform pricing both within and across regions—i.e., prices almost do not vary within stores of a chain. In line with uniform pricing, prices in stores of chains operating in one region react to changes in regional employment, while prices in multi-region chains do not. Using a quantitative regional model with multi-region firms and uniform pricing, we find a one-half smaller elasticity of prices to a regional than an aggregate shock. This result highlights that some caution may be necessary when using regional shocks to estimate aggregate elasticities.

Suggested Citation

  • Diego Daruich & Julian Kozlowski, 2019. "Macroeconomic Implications of Uniform Pricing," Working Papers 2019-024, Federal Reserve Bank of St. Louis, revised 01 Sep 2021.
    • Handle: RePEc:fip:fedlwp:2019-024
    DOI: 10.20955/wp.2019.024
    Note: Publisher DOI: https://doi.org/10.1257/mac.20210172
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    2. Miguel Faria-e-Castro & Julian Kozlowski & Jeremy Majerovitz, 2025. "The Cost of Capital and Misallocation in the United States," Working Papers 2025-013, Federal Reserve Bank of St. Louis.
    3. Diego Aparicio & Zachary Metzman & Roberto Rigobon, 2024. "The pricing strategies of online grocery retailers," Quantitative Marketing and Economics (QME), Springer, vol. 22(1), pages 1-21, March.
    4. Ariel Burstein & Javier Cravino & Marco Rojas, 2025. "Input Price Dispersion Across Buyers: New Evidence and Implications for Aggregate Productivity," Working Papers Central Bank of Chile 1006, Central Bank of Chile.
    5. Miguel Faria-e-Castro & Samuel Jordan-Wood & Julian Kozlowski, 2024. "An Empirical Analysis of the Cost of Borrowing," Working Papers 2024-016, Federal Reserve Bank of St. Louis, revised 09 Dec 2025.
    6. Gianluca Antonecchia & Ajay Bhaskarabhatla & Enrico Pennings, 2024. "Bargaining Power and Quantity Discounts to Retailers: Evidence from India’s Pharmaceutical Industry," Tinbergen Institute Discussion Papers 24-048/VII, Tinbergen Institute.

    More about this item

    Keywords

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    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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