The Law of One Price Without the Border: The Role of Distance Versus Sticky Prices
The Law of One Price Without the Border: The Role of Distance Versus Sticky Prices
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DOI：
10.1111/j.1468-0297.2010.02354.x
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发表时间：
2009-04
期刊：
影响因子：
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通讯作者：
Mario J. Crucini;M. Shintani;Takayuki Tsuruga
中科院分区：
文献类型：
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作者：
Mario J. Crucini;M. Shintani;Takayuki Tsuruga
我们研究了名义价格刚性在解释日本各城市对一价定律（LOP）的偏离方面的作用。专注于国内相对价格隔离了边界效应，从而使我们能够提取粘性价格的纯效应。一个两个城市的名义刚性和运输成本的模型预测，LOP偏差的变化是较低的商品价格调整频率控制后的距离分开的城市。我们使用在日本城市收集的单个商品和服务的零售价格数据，发现了支持这一预测的有力证据。将Engel和Rogers（1996）的回归框架调整到我们的理论设置中，我们量化了名义刚性和贸易成本（以距离为代表）在产生LOP变异性中的单独作用。我们的估计表明，距离相当于名义刚性可以大的“宽度”的边界通常发现在文献中的国际LOP偏差。研究结果指出，回归框架在确定定性影响（即，系数的符号）以及解释其量化含义的挑战。
We examine the role of nominal price rigidities in explaining the deviations from the Law of One Price (LOP) across cities in Japan. Focusing on intra-national relative prices isolates the border effect and thus enables us to extract the pure effect of sticky prices. A two-city model with nominal rigidities and transportation costs predicts that the variation of LOP deviations is lower for goods with less frequent price adjustment after controlling for the distance separating the cities. Using retail price data for individual goods and services collected in Japanese cities, we find strong evidence supporting this prediction. Adapting the Engel and Rogers (1996) regression framework to our theoretical setting, we quantify the separate roles of nominal rigidities and trade costs (proxied by distance) in generating LOP variability. Our estimates suggest that the distance equivalent of nominal rigidities can be as large as the `width' of the border typically found in the literature on international LOP deviations. The findings point to both the utility of the regression framework in identifying qualitative effects (i.e., sign of a coefficient) and the challenges interpreting their quantitative implications.