The impact of technology on regional price dispersion in the us

Ismail H. Genc

doi:10.3846/tede.2021.15238

The impact of technology on regional price dispersion in the us

Ismail H. Genc^*

^*Corresponding author for this work

American University of Sharjah

Research output: Contribution to journal › Article › peer-review

2 Citations (Scopus)

Abstract

We analyze the behavior of inflation in the era of fast pace information thanks to technological advances, especially internet. Owing to readily available information, prices/inflation should quickly converge under perfect competition. To this end, we explore the possibility of price convergence in regional inflation in the USA including the permanency of such a phenomenon if observed, a concern for monetary policy makers. Empirically, we analyze standard deviation of regional inflation with special attention to technology. We show that standard deviation of inflation is not constant over time, but not necessarily ever-declining. Technology seems to help reduce price dispersion across regions.

Original language	English
Pages (from-to)	1281-1300
Number of pages	20
Journal	Technological and Economic Development of Economy
Volume	27
Issue number	6
DOIs	https://doi.org/10.3846/tede.2021.15238
Publication status	Published - 18 Nov 2021
Externally published	Yes

Bibliographical note

Publisher Copyright:
© 2021 The Author(s). Published by Vilnius Gediminas Technical University.

Keywords

Convergence
Inflation differentials
Inflation persistence
Structural break
Technology

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.3846/tede.2021.15238

Cite this

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AB - We analyze the behavior of inflation in the era of fast pace information thanks to technological advances, especially internet. Owing to readily available information, prices/inflation should quickly converge under perfect competition. To this end, we explore the possibility of price convergence in regional inflation in the USA including the permanency of such a phenomenon if observed, a concern for monetary policy makers. Empirically, we analyze standard deviation of regional inflation with special attention to technology. We show that standard deviation of inflation is not constant over time, but not necessarily ever-declining. Technology seems to help reduce price dispersion across regions.

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KW - Inflation persistence

KW - Structural break

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The impact of technology on regional price dispersion in the us

Abstract

Bibliographical note

Keywords

UN SDGs

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