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Is new economic geography right? : evidence from price data

Autore: Jessie Handbury; David E Weinstein; National Bureau of Economic Research.
Editore: Cambridge, Mass. : National Bureau of Economic Research, ©2011.
Serie: Working paper series (National Bureau of Economic Research), no. 17067.
Edizione/Formato:   eBook : Document : EnglishVedi tutte le edizioni e i formati
Banca dati:WorldCat
Sommario:
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  Per saperne di più…
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Dettagli

Persona incaricata: Paul R Krugman; Paul R Krugman
Tipo materiale: Document, Risorsa internet
Tipo documento: Internet Resource, Computer File
Tutti gli autori / Collaboratori: Jessie Handbury; David E Weinstein; National Bureau of Economic Research.
Numero OCLC: 728638137
Note: "May 2011."
Title from http://www.nber.org/papers/17067 viewed June 3, 2011.
Descrizione: 1 online resource (53 p.) : ill.
Titolo della serie: Working paper series (National Bureau of Economic Research), no. 17067.
Responsabilità: Jessie Handbury, David E. Weinstein.

Abstract:

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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