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Is new economic geography right? : evidence from price data

Auteur : Jessie Handbury; David E Weinstein; National Bureau of Economic Research.
Éditeur : Cambridge, Mass. : National Bureau of Economic Research, ©2011.
Collection : Working paper series (National Bureau of Economic Research), no. 17067.
Édition/format :   Livre électronique : Document : AnglaisVoir toutes les éditions et les formats
Base de données :WorldCat
Résumé :
The agglomeration force behind the New Economic Geography literature initiated by Krugman is based on the notion that larger markets should have a lower variety adjusted price index. Despite his Nobel Prize, there have been no tests of this idea. This paper represents the first such test. Using a rich dataset covering 10-20 million purchases of grocery items, we find that after controlling for store and shopping  Lire la suite...
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Détails

Personne nommée : Paul R Krugman; Paul R Krugman
Type d’ouvrage : Document, Ressource Internet
Format : Ressource Internet, Fichier informatique
Tous les auteurs / collaborateurs : Jessie Handbury; David E Weinstein; National Bureau of Economic Research.
Numéro OCLC : 728638137
Notes : "May 2011."
Title from http://www.nber.org/papers/17067 viewed June 3, 2011.
Description : 1 online resource (53 p.) : ill.
Titre de collection : Working paper series (National Bureau of Economic Research), no. 17067.
Responsabilité : Jessie Handbury, David E. Weinstein.

Résumé :

The agglomeration force behind the New Economic Geography literature initiated by Krugman is based on the notion that larger markets should have a lower variety adjusted price index. Despite his Nobel Prize, there have been no tests of this idea. This paper represents the first such test. Using a rich dataset covering 10-20 million purchases of grocery items, we find that after controlling for store and shopping effects: 1) Aggregate grocery prices are lower in larger cities; 2) Residents of larger cities have access to substantially more varieties than residents of smaller cities; and 3) These forces combine to substantially lower variety adjusted prices in large cities. In short, Krugman was right.

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