Macroeconomic Implications of Uniform Pricing

77 Pages Posted: 22 Oct 2019 Last revised: 2 Nov 2019

See all articles by Diego Daruich

Diego Daruich

New York University (NYU) - Department of Economics

Julian Kozlowski

New York University (NYU)

Multiple version iconThere are 2 versions of this paper

Date Written: September, 2019

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.

Keywords: Uniform Pricing, Price Dispersion, Regional Economics

JEL Classification: D40, E30, L10, R10

Suggested Citation

Daruich, Diego and Kozlowski, Julian, Macroeconomic Implications of Uniform Pricing (September, 2019). FRB St. Louis Working Paper No. 2019-24, Available at SSRN: https://ssrn.com/abstract=3473130 or http://dx.doi.org/10.20955/wp.2019.024

Diego Daruich (Contact Author)

New York University (NYU) - Department of Economics ( email )

269 Mercer Street, 7th Floor
New York, NY 10011
United States

Julian Kozlowski

New York University (NYU) ( email )

Bobst Library, E-resource Acquisitions
20 Cooper Square 3rd Floor
New York, NY 10003-711
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
11
Abstract Views
176
PlumX Metrics