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Is new economic geography right? : evidence from price data

Autor: Jessie Handbury; David E Weinstein; National Bureau of Economic Research.
Editora: Cambridge, Mass. : National Bureau of Economic Research, ©2011.
Séries: Working paper series (National Bureau of Economic Research), no. 17067.
Edição/Formato   e-book : Documento : InglêsVer todas as edições e formatos
Base de Dados:WorldCat
Resumo:
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  Ler mais...
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Formato Físico Adicional: Print version:
Handbury, Jessie.
Is new economic geography right?.
Cambridge, Mass. : National Bureau of Economic Research, ©2011
(DLC) 2011657265
Pessoa Denominada: Paul R Krugman; Paul R Krugman
Tipo de Material: Documento, Recurso Internet
Tipo de Documento Recursos de internet, Arquivo de computador
Todos os Autores / Contribuintes: Jessie Handbury; David E Weinstein; National Bureau of Economic Research.
Número OCLC: 728638137
Descrição: 1 online resource (53 pages) : illustrations.
Título da Série: Working paper series (National Bureau of Economic Research), no. 17067.
Responsabilidade: Jessie Handbury, David E. Weinstein.

Resumo:

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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