Inflation and Relative Price Dispersion in Equity Markets and in Goods and Services Markets

AbstractFifty years after the Rome Treaties, is there empirical evidence for arguing that the EU today is a fully integrated goods and services market in which the “law of one price” prevails at large? Based on a number of consumer price surveys for goods and services in major cities all over the world since the seventies and, comparing the EU to a benchmark, the US market, the paper is affirmative. Price dispersion between EU cities has declined with the Eurozone as the core EU region in the lead surrounded by two concentric circles. EU goods price dispersion has generally approximated the level in the US market. Yet, price dispersion has declined throughout the world underlining the relevance of global integration rather than only regional integration. Furthermore, there is ample evidence that gravity factors against the “law of one price”, such as distance costs and borders, are still effective.

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CROSS-BORDER TOURISM FROM BRUNEI DARUSSALAM TO EASTERN MALAYSIA: AN EMPIRICAL ANALYSIS

The Singapore Economic Review ◽

10.1142/s0217590802000419 ◽

2002 ◽

Vol 47 (01) ◽

pp. 65-87 ◽

Cited By ~ 7

Author(s):

KWABENA A. ANAMAN ◽

ROSE AMINAH ISMAIL

Keyword(s):

Regression Analysis ◽

Perceived Quality ◽

Personal Income ◽

Relative Price ◽

Factors Affecting ◽

Goods And Services ◽

Cross Border ◽

Brunei Darussalam ◽

Significant Factors

We analysed the factors influencing the level of cross-border tourism from Brunei Darussalam to Eastern Malaysia based on a random survey of 675 Bruneian residents returning from land and sea trips to Eastern Malaysia and using simple statistical and multiple regression analysis. The results revealed that the age of the respondents, personal income, perceived quality of Eastern Malaysia as a better place to rest and relax, perceived quality of goods and services in Eastern Malaysia, use of alcohol by respondents and having family members and friends living in Eastern Malaysia were significant factors affecting the number of visits to Eastern Malaysia. This analysis was based on visits over the 12-month period prior to the survey, a period of relative price stability. Regression analysis of personal expenditures on goods and services of respondents during their most recently completed trip indicated that personal income, travelling with friends, number of days spent on the trip, perception of Eastern Malaysia as a better place to rest and relax and use of public transport were the significant factors affecting expenditures. We estimated that Bruneian residents spent about B$426 million a year on goods and services while visiting Eastern Malaysia, and this amount accounted for roughly 5.7% of Brunei's gross domestic product (GDP) in the year 2000.

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Effect of inflation uncertainty on price dispersion in Iran

Risk Governance and Control Financial Markets & Institutions ◽

10.22495/rgcv8i1art3 ◽

2018 ◽

Vol 8 (1) ◽

pp. 24-35

Author(s):

Bijan Safavi ◽

Bardia Nakhjavan ◽

Seyedabdollah Mirnezami ◽

Mahsan Alizadeh

Keyword(s):

Variable Coefficient ◽

Price Dispersion ◽

Relative Price ◽

Relative Dispersion ◽

Inflation Uncertainty ◽

Monthly Data ◽

Relationship Analysis ◽

Symmetric Effect ◽

Statistical Viewpoint ◽

Unexpected Inflation

This paper studies the inflation relationship analysis and inflation uncertainty with relative price’ dispersion in Iran by using the ordinary minimum squares method, during monthly data 1991:4-2012:12. In this paper, we used the GARCH technique in order to modeling and measuring the inflation uncertainty variable. The results show that inflation uncertainty increasing leads to increased relative price dispersion. Also unexpected inflation regardless of being positive or negative increases the relative price dispersion considerably, but the unexpected inflation decomposition to two positive and negative components and lack of considering them in the equation showed that each component is in a high significant level and cannot be considered for symmetric effect of positive or negative unexpected inflation. Corporations change their price against the positive unexpected inflation alternatively in responding to the inflation shocks and consequently the price will be fluctuated for reaching the balance strictly, therefore positive unexpected inflation cases have been increasing in relative price dispersion. In the other hand, corporations have no tendency for changing the goods’ price against the negative unexpected inflation. Also according to the results, inflation variable coefficient is significant from the statistical viewpoint and this means that this variable increases the relative dispersion considerably.

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Relative Price Dispersion and Inflation: Evidence for the UK and the US

Credit and Capital Markets – Kredit und Kapital ◽

10.3790/ccm.50.1.3 ◽

2017 ◽

Vol 50 (1) ◽

pp. 3-24 ◽

Cited By ~ 2

Author(s):

Gulnihal Aksoy, ◽

Don Bredin, ◽

Deirdre Corcoran, ◽

Stilianos Fountas

Keyword(s):

Price Dispersion ◽

Relative Price ◽

The Us ◽

The Uk

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Optimal Monetary Policy with Relative Price Distortions

The American Economic Review ◽

10.1257/0002828053828653 ◽

2005 ◽

Vol 95 (1) ◽

pp. 89-109 ◽

Cited By ~ 86

Author(s):

Tack Yun

Keyword(s):

Monetary Policy ◽

Price Dispersion ◽

Relative Price ◽

Price Setting ◽

Optimal Monetary Policy ◽

Equilibrium Conditions ◽

Price Distortion ◽

Inflation Targets ◽

Price Distortions ◽

Initial Price

This paper analyzes optimal monetary policy in a sticky price model with Calvo-type staggered price-setting. In the paper, the optimal monetary policy maximizes the expected utility of a representative household without having to rely on a set of linearly approximated equilibrium conditions, given the distortions associated with the staggered price-setting. It shows that the complete stabilization of the price level is optimal in the absence of initial price dispersion, while optimal inflation targets respond to changes in the level of relative price distortion in the presence of initial price dispersion.

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