search query: @author Shintani, M. / total: 4
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| Author: | Crucini, M.J. Shintani, M. Tsugura, T. |
| Title: | The law of one price without the border: the role of distance versus sticky prices |
| Journal: | Economic Journal
2010 : MAY, VOL 120:544 p. 462-480 |
| Index terms: | Japan price theory RETAILING market segmentation pricing |
| Language: | eng |
| Abstract: | This article presents a single-country, two city, model with nominal rigidities and transport costs which predicts that variation of LOP deviations is lower for goods with infrequent price adjustment after controlling for distance. The Engel and Rogers (1996) regression is adapted to analyze Japanese retail prices at the city level and it is found that results are consistent with the hypothesis. The regression results also suggest that the distance equivalent of nominal rigidities can be as huge as the "width" of the border found in the literature on international LOP, casting doubt on casual interpretations of distance as a metric for market segmentation. |
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